<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-1-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-1_2x-new.png 2x" alt="1" width="37" />Data Center Boom (or Bubble?)
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />If you want to understand the magnitude &mdash; and potential peril &mdash; of the current artificial intelligence (AI) boom, look beyond the headlines and into the humming aisles of the world&rsquo;s largest data centers.
&ldquo;Technology infrastructure providers have become the unsung heroes as the AI revolution accelerates,&rdquo; says Paradigm&rsquo;s trading pro Enrique Abeyta. Their chips and computing platforms power everything from language models to next-gen data centers.
Without these companies, he argues, &ldquo;The software breakthroughs capturing headlines wouldn&rsquo;t be possible.&rdquo; In many ways, Enrique suggests, this new AI infrastructure &ldquo;is to AI what steel and railroads were to the Industrial Age.&rdquo;
But history warns that every infrastructure boom, no matter how highflying, can end in a sobering bust. &ldquo;The railroad boom of the 19th century collapsed after infrastructure buildout &mdash; fueled by speculative capital and greed &mdash; surged ahead of demand and hit a painful wall,&rdquo; he says.
He draws a vivid link to the present: &ldquo;We are facing a similar situation in the global race to build out AI.&rdquo; Tech giants are locked in an arms race, spending over $350 billion this year alone on data centers, chips and energy infrastructure.
Nowhere is this race more apparent than Nvidia. Once a niche graphics chip supplier, Nvidia is &ldquo;the crown jewel of the AI revolution, powering nearly every major data center buildout with its high-performance GPUs.&rdquo;
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> Nvidia&rsquo;s wild ride from market darling to history&rsquo;s most valuable public company is legendary. But beneath this meteoric ascent, Enrique sees a bubble.
&ldquo;AI infrastructure spending is driven not by current revenue, but by fear of missing out. Cloud giants pour tens of billions into building AI capabilities, funded by investors overlooking costs for market leadership.&rdquo;
For Nvidia, Enrique warns, &ldquo;The capital outlays resemble the telecom fiber boom, where exuberance outpaced sustainable returns.&rdquo; If spending slows, as it will, &ldquo;Nvidia's revenue growth could quickly flatten or reverse.&rdquo;
The company&rsquo;s $4 trillion market cap assumes it will dominate unchallenged. Yet history shows early infrastructure players often enjoy spectacular gains &mdash; just before the bottom falls out.
&ldquo;Nvidia risks repeating that pattern,&rdquo; Enrique says, citing Cisco&rsquo;s collapse after the dot-com bubble. &ldquo;A slowdown in AI infrastructure buildouts, margin pressure or a shift to in-house chips could trigger a sharp correction.&rdquo;
He predicts Nvidia&rsquo;s share price could crash as early as 2026. It&rsquo;s important to note, in late 2024, Enrique previously forecast a $1 trillion market loss for Nvidia.
&ldquo;On the chart below, I circled the stock&rsquo;s price when I published my prediction,&rdquo; Enrique notes. &ldquo;By early April, Nvidia had officially lost $1 trillion in market cap.&rdquo;
<img class="aligncenter" src="https://images.ctfassets.net/vha3zb1lo47k/4tb9iky1qDGmIGl36wozse/1b407d3cf55a4945c90cc23d3b4f5d18/Chart1.png" alt="Chart" width="540px" />
After a brief recovery, he cautions: &ldquo;The next fall will be steeper&hellip;
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> &ldquo;Nvidia&rsquo;s next drop could wipe out $2 trillion soon,&rdquo; says Enrique.
He calls this the &ldquo;capital cycle that will crush Nvidia,&rdquo; drawing on two centuries of crises in railroads, electricity, radio and the internet.
&ldquo;Every time, companies invest too much in the short term. Capacity will be used eventually, but after buildout, there&rsquo;s too much supply for demand.&rdquo;
The result: &ldquo;A period of weakness&hellip; even the best equipment, like Nvidia&rsquo;s chips, will see demand crater.&rdquo;
What&rsquo;s an investor to do? Enrique is clear: &ldquo;If you own Nvidia shares, take profits now or hedge. Now is the moment to protect gains and prepare for downside. The risk is too big to ignore.&rdquo;
Paradigm&rsquo;s macro expert Jim Rickards agrees, but sees things from a different angle.
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />Jim warns much of the AI hype is based on the elusive promise of artificial general intelligence (AGI) &mdash; a goal he believes may never be achieved. 
&ldquo;AGI is unlikely because it requires abductive logic &mdash; that humans have but computers can&rsquo;t program.&rdquo;
If that hope collapses, Jim says: &ldquo;Much investment will be written off. That could come sooner than expected and cause the greatest stock market collapse ever.&rdquo;
Beyond financial risk, Jim highlights the boom&rsquo;s physical toll: &ldquo;AI data centers consume huge electricity, exceeding some U.S. states.&rdquo;
He foresees an energy crisis that could cripple technology advancement and national security, worsened by automation and job losses.
The upshot: While the AI boom promises dazzling tech and returns, history warns a reckoning looms.
As Enrique and Jim argue, investors must approach this revolution with clear-eyed skepticism as well as humility. Because if history is any guide, what goes up &mdash; especially at the heart of a hyped buildout &mdash; will inevitably come down.
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-2-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-2_2x-new.png 2x" alt="2" width="37" />GM&rsquo;s Innovation Flip-Flop
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />&ldquo;General Motors is really good at one thing. Unfortunately, it&rsquo;s not innovation, engineering or visionary leadership,&rdquo; says Paradigm editor Davis Wilson at The Million Mission e-letter.
No, GM&rsquo;s specialty is spending &ldquo;billions chasing the &lsquo;next big thing&rsquo;&hellip; only to slam on the brakes, reverse course and start all over again years later from behind,&rdquo; Davis continues.
Just a few years ago, for instance, GM promised an all-electric lineup by 2035 &mdash; &ldquo;big talk,&rdquo; Davis notes. Yet with production delays, &ldquo;slowing sales and infrastructure challenges,&rdquo; the company quietly abandoned these ambitions.
But not after investing &ldquo;billions in supply chains, R&amp;D and retooling factories only to slam the brakes at the first bump&hellip; Doesn&rsquo;t exactly scream visionary leadership,&rdquo; he quips.

<img class="aligncenter" src="https://images.ctfassets.net/vha3zb1lo47k/dXIRM96VzK61ETNEJNo2Z/bff046a27db1347dc745293c7aafc4c2/Orion.png" alt="orion" width="540px" />

Courtesy: Oakland County Times Orion Township, Michigan
Then came the Cruise debacle, when &ldquo;a high-profile incident in San Francisco&rdquo; led GM to shutter its robotaxi program, costing the company nine executives and a CEO.
Their most recent flip-flop? After scrapping its robotaxi venture amid &ldquo;regulatory crackdowns, executive firings and public embarrassment,&rdquo; GM is trying to jump back into autonomous vehicles (AVs).
Now GM is attempting &ldquo;to lure back former Cruise employees&rdquo; and push for &ldquo;hands-free, eyes-free driving,&rdquo; led by Sterling Anderson, ex-Tesla Autopilot chief.
Still, GM&rsquo;s rivals (Tesla, Waymo, Zoox, Baidu) already have &ldquo;a multiyear head start and active deployments.&rdquo;
&ldquo;This is becoming GM&rsquo;s playbook: Make a big, expensive innovation push. Reverse course when things get tough. Lose momentum and market share. Announce a &lsquo;new&rsquo; push years later (starting from behind),&rdquo; Davis writes.
Ultimately, he warns: &ldquo;Beware companies that chase buzzy industries primarily for stock-market glory&hellip; Consistent vision, deep execution and the patience to see innovation through tough times &mdash; those are the real keys to leadership.&rdquo;
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> Inflation at the wholesale level is defying expectations (not in a good way). The Producer Price Index (PPI) leapt 0.9% in July versus the consensus 0.2%. Year-over-year, wholesale inflation is now running at 3.3%... Will this evaporate the Fed&rsquo;s will to cut rates come September? 
The market is paring its losses after slumping hard &mdash; post PPI data. Notwithstanding, the three major stock indexes are all in the red. The Dow&rsquo;s hit hardest, down 0.25% to 44,780. At the same time, the S&amp;P 500 is down 0.10% to 6,450 while the tech-heavy Nasdaq is down 0.05% to 21,695.
Commodities? Oil is up 1.40% to $63.50 for a barrel of WTI. As for precious metals, gold is down 0.70% to $3,385.80 per ounce, and silver is down 1.50% to $38.
When it comes to the crypto market &mdash; that never sleeps &mdash; Bitcoin (-3.45%) and Ethereum (-2.70%) are hanging out at $118,240 and $4,590 respectively.
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-3-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-3_2x-new.png 2x" alt="3" width="37" />Lost in Translation: &ldquo;Bailout&rdquo;
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />Four years after Evergrande&rsquo;s financial collapse shook China&rsquo;s property market, the company faces a symbolic milestone: its delisting from the Hong Kong stock exchange on Aug. 25, 2025. 
This event marks the official end of the trading life of what was once China&rsquo;s second-largest property developer, a towering figure in the country&rsquo;s real estate boom and subsequent bust.
<a href="https://5minforecast.com/2021/09/01/chinas-lehman-moment-looms/">Evergrande&rsquo;s downfall</a> began in 2021, when the company disclosed it could not meet its vast debt obligations.
<img class="aligncenter" src="https://images.ctfassets.net/vha3zb1lo47k/2yn4jWp1j541el1TEUrM1f/0ad6e2809dc854b61f889ef495469a13/Julia.png" alt="julia tweet" width="540px" />
By January 2024, a Hong Kong court ordered Evergrande&rsquo;s liquidation after rejecting its restructuring plans, revealing a staggering debt load over $300 billion owed to banks, bondholders and suppliers.
Trading in Evergrande&rsquo;s shares has since been suspended, with the Hong Kong Stock Exchange canceling its listing after 18 months of inactivity in July 2025. Evergrande confirmed it would not contest the decision, leaving shareholders with certificates that hold no tradable value going forward.
Meanwhile, the liquidation process has been a slow, complex affair. Liquidators have taken control of more than 100 group companies, valuing assets collectively around $3.5 billion as of early 2024.
To date, only about $255 million worth of assets have been sold, reflecting the difficult job of realizing value amid tangled ownership structures.
But debt claims submitted far exceed initial estimates, reaching $45 billion by mid-2025 with the total likely still rising.
[A pivotal aspect of this saga focuses on Evergrande&rsquo;s founder, Hui Ka Yan. Hui, who controls about 60% of the company, refuses to disclose his assets to creditors.
At a court hearing in September, however, liquidators aim to compel Hui to reveal his holdings. The outcome could set a precedent for other insolvent Chinese developers and the scrutiny their owners may face.]
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> Evergrande&rsquo;s collapse reflects broader challenges in China&rsquo;s real estate sector.
Despite government efforts, the property market remains mired in a deep slump, with investment declining further in 2025 and little sign of a stimulus to revive growth.
Not to mention the political and economic environment under President Xi Jinping has shifted priorities away from bailout-style rescues, emphasizing party control and stability over market intervention.
This approach contrasts sharply with Western notions of &ldquo;too big to fail,&rdquo; underscoring a new paradigm where loyalty to the Communist Party trumps traditional capitalist safeguards.
The key takeaway from Evergrande&rsquo;s prolonged demise is a stark signal that China&rsquo;s property crisis is far from over. The delisting and slow asset recovery illustrate a fractured sector facing long-term pain, with profound implications for investors, homeowners and the economy as a whole.
This story continues to unfold, but Evergrande&rsquo;s downfall stands as a cautionary tale of debt excess and the perils of state capitalism in one of the world&rsquo;s largest economies.
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-4-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-4_2x-new.png 2x" alt="4" width="37" />The Last Days of Dial-Up
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />AOL&rsquo;s dial-up internet, once the gateway for millions venturing online for the first time, is officially coming to an end on Sept. 30, 2025.
In its heyday, AOL made the internet accessible to everyday families, introducing its famous &ldquo;You&rsquo;ve got mail&rdquo; catchphrase that still resonates in pop culture.
And who can forget the chorus of beeps and static that defined the early web experience? Or the frustration of being booted offline when someone picked up the landline?
Launched in the late 1980s as America Online, AOL reached dazzling heights &mdash; with its market cap soaring to over $200 billion by the turn of the millennium.
The company, in fact, dominated the internet landscape, connecting over 20 million users at its peak and even merging with media giant Time Warner in a colossal (but, ultimately, disastrous) deal.
The march of progress, however, was relentless: Broadband and wireless networks quickly eclipsed dial-up&rsquo;s slow, quirky connection.
Yet even as technology raced forward, a small, determined group held on. As recently as 2023, around 163,000 U.S. households were still using dial-up as their sole online access, often in rural or underserved regions.
Now as AOL shutters its dial-up service, it marks not just the end of a technology, but the closing of a chapter in internet history.
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-5-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-5_2x-new.png 2x" alt="5" width="37" />HODL
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />&ldquo;I thought you&rsquo;d appreciate this tweet,&rdquo; a reader writes.
<img class="aligncenter" src="https://images.ctfassets.net/vha3zb1lo47k/6N60AJDRRrtAdNqAJUqPMs/875e2ceaa6f0566830ad8d89621049ff/Carl-blur.png" alt="carl tweet" width="540px" />
Sad.
Hang in there, reader&hellip; We&rsquo;ll be back with another 5 Bullets tomorrow.
Best regards,
<img class="aligncenter" src="https://media.paradigmpressgroup.com/signatures/emily-clancy.png" alt="Emily Clancy" width="250px" align="left" />
Emily Clancy Associate editor, Paradigm Pressroom's 5 Bullets

Screenshot 2025-08-14 at 1.04.28 PM

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Paradigm Pressroom’s 5 Bullets is a daily e-letter covering the economy and the markets, reaching 120,000 paying subscribers of the renowned financial publishing firm Paradigm Press.

Paradigm Pressroom's 5 Bullets

History warns that every infrastructure boom, no matter how highflying, can end in a sobering bust.

Caveat Emptor

<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-1-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-1_2x-new.png 2x" alt="1" width="37" />It&rsquo;s Trump&rsquo;s War Now
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> &ldquo;Trump may understand the art of the deal, but he does not understand the art of war,&rdquo; Jim Rickards wrote Monday to his Strategic Intelligence subscribers. &ldquo;Those are two quite different skills.&rdquo;
We&rsquo;re about 48 hours away from a summit in Alaska between Trump and Russia&rsquo;s Vladimir Putin.
Apart from the Russia-Ukraine war, this meeting has huge implications for global trade and energy. We&rsquo;ll get to that soon enough &mdash; but first, it&rsquo;s necessary to get a handle on the war.
In recent weeks, &ldquo;Trump has flip-flopped between his support for Ukraine and his positive remarks about Russia and Putin,&rdquo; says Jim. &ldquo;But lately he has come down firmly on the side of Ukraine and the neo-Nazis around President Zelenskyy.
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> &ldquo;This means the war in Ukraine is now Trump&rsquo;s war,&rdquo; says Jim &mdash; underscoring a warning he issued as soon as Trump returned to office in January.
&ldquo;Trump has promised more weapons to Ukraine and legislation is now moving to provide an additional $50 billion in aid.
&ldquo;At the same time, Trump gave Putin an ultimatum to accept an unconditional ceasefire in Ukraine, which Russia naturally rejected. After all, Russia is winning the war decisively and none of the U.S. weapons systems provided so far has been effective. That won&rsquo;t change.
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> &ldquo;Where Trump has really gone off the rails is to threaten secondary sanctions on China and India,&rdquo; says Jim.
Last month, Trump gave Putin 50 days to agree to a ceasefire &mdash; and if Putin didn&rsquo;t comply, Trump said he&rsquo;d impose 100% tariffs on any country that buys Russian energy.
Then Trump shortened that timeline to 10 days &mdash; setting an effective deadline of Aug. 8, last Friday. On that day, Trump announced he&rsquo;d be meeting with Putin in a week&rsquo;s time.
So the deadline is on hold &mdash; while the threat remains.
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> Here&rsquo;s the problem &mdash; and why Trump doesn&rsquo;t have any leverage. &ldquo;India and China need the Russian oil to fuel their growing economies,&rdquo; says Jim. &ldquo;They will continue to buy it.&rdquo;
Amid the threat of these 100% tariffs, the Trump administration continues to try to negotiate trade deals with India and China.
&ldquo;It should come as no surprise that the India and China tariff negotiations have not been going well,&rdquo; Jim wrote his Insider Indel readers this morning. &ldquo;Why should they agree to regular tariffs without knowing whether punitive tariffs are right around the corner? They won&rsquo;t.
&ldquo;China and India have various ways to respond. They could redirect their exports to friendly countries in Europe or Brazil and Australia. They could impose countervailing tariffs on U.S. exports to them, including on soybeans and High Tech. They could restrict U.S. investment in their growing economies. The list goes on.
&ldquo;What is certain is that the Trump tactic of secondary sanctions will hurt world trade and increase costs on many traded goods.
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> &ldquo;The biggest single cost will be a higher price for oil,&rdquo; Jim continues.
&ldquo;That&rsquo;s because Russia, India and China will all incur costs in insurance markets and ghost tanker fleets needed to evade the sanctions in the first place. Who wins from higher oil prices? Russia. Who loses? U.S. consumers who pay higher prices for gas at the pump compared to a world without sanctions.&rdquo;
We&rsquo;ll be standing by to see what comes out of the summit on Friday &mdash; and whether Trump is able to resist the advice of the Russia hawks on his team like retired Gen. Keith Kellogg and Secretary of State Marco Rubio.
Ironically, Jim says if Trump really wanted to hurt Moscow&hellip; he&rsquo;d work with U.S. producers and Saudi Arabia to flood the global market with oil, driving the price down and depriving Russia of oil revenue. Stay tuned&hellip;
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-2-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-2_2x-new.png 2x" alt="2" width="37" />Hey, Big Spender&hellip;
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />Like it or not, DOGE hasn&rsquo;t made a damn bit of difference to Uncle Sam&rsquo;s balance sheet &mdash; and tariff revenue is barely filling the gap.
Yesterday afternoon the U.S. Treasury issued its monthly statement of income and outflows. Federal spending totaled $629.6 billion in July &mdash; 9.7% higher than July of last year.
Meanwhile, revenue totaled $338.5 billion &mdash; up only 2.5% from a year earlier despite a 290% leap in tariff revenue.
The result was a monthly deficit of $291.1 billion &mdash; up from $243.7 billion in July 2024.
For the first six full months of the Trump 47 administration, February-July, federal spending totaled $3.37 trillion &mdash; up 3.2% from the same period a year earlier, when the Biden administration was spending like the proverbial drunken sailor to ensure its reelection. And the six-month deficit of $880 billion is 1.7% higher than the same period in 2024.
The growth of the government&rsquo;s budget gap translates directly to rising long-term interest rates: Bond traders have less and less confidence that Uncle Sam will ever get his act together.
The yield on a 10-year Treasury note sits at 4.26% this morning &mdash; compared with 3.82% a year ago. And those higher rates only make the debt spiral worse&hellip;
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />But for now, no worries for the stock market. The S&amp;P 500 and the Nasdaq are reaching higher into record territory today &mdash; and the Dow might catch up soon.
At last check, the S&amp;P 500 is up 13 points to 6,458&hellip; while the Nasdaq is up 31 points to 21,712.
The big mover is the Dow &mdash; up three-quarters of a percent to 44,794 and a little over 200 points away from its record close on July 23.
As for nondollar assets, gold is moribund at $3,353 but silver is on a tear &mdash; up over 50 cents to $38.39. Bitcoin is back over $121,000 &mdash; perhaps coiling for another run at a record.
Oil has sunk nearly a buck after the Energy Department&rsquo;s weekly inventory numbers &mdash; now $62.27, the lowest since early June.
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-3-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-3_2x-new.png 2x" alt="3" width="37" /> Making Videos: Almost as Easy as Sending a Text
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> &ldquo;Remember when making a decent video meant dropping thousands of dollars? Those days are gone,&rdquo; says Paradigm&rsquo;s AI authority James Altucher.
I remember. When I was breaking into the TV news business nearly 40 years ago, &ldquo;video editing&rdquo; was done strictly on analog tape. It entailed a huge playback deck&hellip; a huge recording deck&hellip; a controller with buttons and jog/shuttle dials&hellip; and a couple of 13-inch tube TVs to monitor what you were doing.
Oh, and a rat&rsquo;s nest of cables connecting it all.
Fast-forward to this summer: &ldquo;In June,&rdquo; James tells us, &ldquo;a Los Angeles dentist with zero filmmaking experience created a video that looked as good as a Super Bowl ad. The concept was ridiculous but brilliant.
&ldquo;A gorilla goes skydiving while drinking beer. He crashes on landing, breaking his two front teeth. Desperate for help before his date that night, he visits a Hollywood dentist who fixes his smile in under an hour.
&ldquo;The ad cost less than $50 to make. It generated millions of views and brought in new patients worth tens of thousands of dollars.&rdquo;
That&rsquo;s just one example: &ldquo;With AI video now making it possible for anyone to create high-quality content, executives at the big movie studios are scrambling to figure out how they stay relevant.
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> &ldquo;The secret behind this revolution is Google's Veo 3,&rdquo; says James &mdash; &ldquo;released in May and already used to create more than 40 million videos in just 12 weeks.
&ldquo;It was the first tool on the market to generate realistic videos complete with synchronized sound effects and dialogue.&rdquo;
No, it&rsquo;s not free. You need a Google AI Pro subscription &mdash; $20 a month, although sometimes you can score a one-month free trial.
James is always on alert for interesting side hustles his readers can pursue &mdash; and AI-generated videos are definitely one of them.
&ldquo;Small businesses are desperate for affordable video content,&rdquo; he wrote his Inner Circle Elite readers on Monday. &ldquo;They need ads for social media, their websites and local TV. Some creators are charging $500&ndash;1,000 per AI-generated video that would have cost $5,000&ndash;10,000 to produce traditionally.
&ldquo;In one day, you can create a few good sample videos showcasing different styles and concepts for ads. Post them on social media with a conclusion about how they were made with AI and you can help other businesses do the same. Set up a Facebook or YouTube ad account targeting small-business owners and watch the interest pour in.&rdquo;
James&rsquo; bottom line: &ldquo;In five years, we'll look back at this moment as the turning point when creating professional-quality video became as accessible as sending a text message.&rdquo;
Of course, AI has both its upsides and downsides. It&rsquo;s the latter we move on to next&hellip;
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-4-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-4_2x-new.png 2x" alt="4" width="37" />Great Moments in the Law
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> AI in the courtroom is no longer a laughing matter.
More than two years ago, we treated you to a good chuckle when lawyers in a personal-injury case relied a little too much on ChatGPT to prepare their brief.
Their client was suing the Colombian airline Avianca in federal court because he smacked his knee on a metal serving cart during a flight to New York. The lawyers&rsquo; brief included several nonexistent decisions and quotations, invented by ChatGPT.
The judge dismissed the case and fined the plaintiff&rsquo;s lawyers $5,000. The case is so notorious it has <a href="https://en.wikipedia.org/wiki/Mata_v._Avianca,_Inc.">its own Wikipedia page</a>.
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />Now it appears that federal judges are relying on AI to render their decisions.
&ldquo;In recent weeks,&rdquo; reports The Washington Times, &ldquo;two federal judges have had to withdraw rulings because of fabricated information that experts said likely came from faulty artificial intelligence queries.&rdquo;
<ul>
<li>A Reagan appointee in Mississippi struck down a state law forbidding state agencies from sponsoring DEI programs. Three days later, he withdrew his opinion because the Times says it &ldquo;referred to nonexistent state law and parties and cited declarations that weren&rsquo;t part of the case&rdquo;</li>
</ul>
<ul>
<li>Meanwhile, a Biden appointee in New Jersey withdrew an opinion that according to the Times &ldquo;misstated case outcomes and included fabricated quotes attributed to litigants and other court precedents.&rdquo;</li>
</ul>
The judges haven&rsquo;t publicly explained their errors. But legal experts say it sure looks as if they relied on AI.
Wonderful as large language models like ChatGPT are, they have an unfortunate tendency to &ldquo;hallucinate&rdquo; as techie types say &mdash; or to make **** up as you and I would say.
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> &ldquo;This should be thoroughly investigated,&rdquo; says our Jim Rickards, who spent decades as a Wall Street lawyer. &ldquo;The judges should be reprimanded and possibly subject to more serious discipline if it turns out they were using GPT to do legal research.
&ldquo;Even if these mistakes were the work of law clerks, those judges should have exercised greater oversight, and the clerks should be fired.
&ldquo;GPT is powerful and useful, but users must understand the flaws and limitations. Letting GPT run wild in the classroom or the courtroom is a recipe for disaster.&rdquo;
Or anywhere else. Your editor prepared today&rsquo;s write-up about the monthly Treasury statement with help from the Perplexity AI engine &mdash; way less time-consuming than tracking down six months of figures and plugging them into a spreadsheet.
Perplexity initially served up numbers I knew couldn&rsquo;t possibly be right. &ldquo;Thanks for catching the error!&rdquo; it told me chirpily before correcting itself.
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-5-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-5_2x-new.png 2x" alt="5" width="37" />Mailbag: Sink the Antoni!
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> A reader writes to take issue with my tentative assessment of E.J. Antoni &mdash; Trump&rsquo;s nominee to run the Bureau of Labor Statistics &mdash; as a straight shooter.
&ldquo;Maybe he is. But he also has a wall-sized multipanel print of the famous Nazi warship the Bismarck plastered across his office.&rdquo;
The reader supplied several screengrabs like this one to back up his case.
<img class="aligncenter" src="https://images.ctfassets.net/vha3zb1lo47k/1MqMGgCzK5FI1Wojm3vrHN/7cbc35bf7b960fc1e4815302e7cf0e13/MainStMatt.png" alt="main st matt" width="540px" />
&ldquo;This is Trump's MO. Loyalty over ethics. This man will say whatever Trump wants him to say.
&ldquo;So no, I cannot agree with your assessment of his character. No one involved with the Heritage Foundation carries any credence in my book. Seems like a great choice if the plan is to lie and push more authoritarian power grabs forth, as we are witnessing in D.C. right now.&rdquo;
Dave responds: No one wants to remember, but Heritage is the policy shop that dreamed up the &ldquo;individual mandate&rdquo; to buy health insurance &mdash; which became the cornerstone of Obamacare.
Anyway, I did qualify my straight-shooter statement by saying, &ldquo;on the few occasions I&rsquo;ve encountered Antoni&rsquo;s posts on social media&hellip;&rdquo;
Antoni is making noises now about suspending the monthly jobs report because he says the data is unreliable &mdash; running instead with quarterly data he describes as &ldquo;more accurate, though less timely.&rdquo;
Again, my familiarity with Antoni is limited. But it&rsquo;s worth noting many conservative policy wonks are appalled at his nomination, such as Jessica Riedl of the Manhattan Institute &mdash; not exactly a hotbed of progressivism&hellip;
<img class="aligncenter" src="https://images.ctfassets.net/vha3zb1lo47k/6zWfVnexa4t2OknRgzlSmv/ab896e5f082e1501798282c26f49a8f6/Jessica.png" alt="jessica tweet" width="540px" />
As for the Bismarck&hellip; who knows what Antoni&rsquo;s motivation is. If he&rsquo;s celebrating Nazi technology or warfighting skill &mdash; well, he should study up a bit more.
The Bismarck met its demise at the hands of the Royal Navy only nine months after commissioning &mdash; an event celebrated in the 1960 movie Sink the Bismarck!
(No, I&rsquo;ve never watched, but I seem to remember it was a staple of Sunday afternoon TV when I was growing up&hellip;)
Best regards,
<img class="aligncenter" src="https://media.paradigmpressgroup.com/signatures/dave-gonigam.png" alt="Dave Gonigam" width="250px" align="left" />
Dave Gonigam Managing editor, Paradigm Pressroom's 5 Bullets

Trump-Biden

“Trump may understand the art of the deal, but he does not understand the art of war,” Jim Rickards says. “Those are two quite different skills.”

It’s Trump’s War Now

<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-1-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-1_2x-new.png 2x" alt="1" width="37" />Good for Wall Street, Bad for Main Street
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />&ldquo;American companies are repurchasing their shares at a record pace,&rdquo; says The Wall Street Journal &mdash; &ldquo;boosting their balance sheets and fueling the U.S. stock rally.&rdquo;
So far in 2025, U.S. firms have announced $983.6 billion in stock buybacks &mdash; the strongest start to a year in data going back to 1982.
Leading the way are Magnificent 7 names like Apple and Google parent Alphabet &mdash; along with too-big-to-fail banks like JPMorgan Chase and Bank of America.
Recall that when companies buy back their shares, that has the effect of driving up earnings per share &mdash; which often translates to a higher share price.
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> Now let&rsquo;s step back from the headline news and talk about what a company can do when it&rsquo;s sitting on a boatload of cash.
Basically, the company has five choices&hellip;
<ul>
<li>Raise the dividend: That is, pay a higher percentage of the profits to shareholders every quarter. Or institute a dividend that didn&rsquo;t exist before</li>
</ul>
<ul>
<li>Share buybacks: See above. Buybacks have the effect of shrinking the overall share count; thus, every shareholder winds up owning a slightly bigger chunk of the company</li>
</ul>
<ul>
<li>Mergers and acquisitions: Self-explanatory</li>
</ul>
<ul>
<li>Capital expenditures, or capex: Build new factories, buy new equipment</li>
</ul>
<ul>
<li>Research and development: Also self-explanatory.</li>
</ul>
The last two of those choices are all about growing the business for the future and bringing new wealth into existence.
The first two &mdash; and to a lesser extent, the middle one &mdash; do not create new wealth.
They&rsquo;re what a company does when management looks around for ways to invest in the future of their businesses &mdash; and doesn&rsquo;t see anything worthwhile.
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />That&rsquo;s good for Wall Street, not so good for Main Street.
Not that the Journal&rsquo;s article puts it that bluntly. You have to read between the lines.
&ldquo;The confusion around trade has stalled many businesses&rsquo; investment plans,&rdquo; it says &mdash; &ldquo;making buybacks a more appealing use of incoming cash.&rdquo;
And then there&rsquo;s the case of Apple. Recall that Apple promised Donald Trump six months ago to invest $500 billion in the United States over the next four years &mdash; a promise that Apple upped to $600 billion a few days ago.
But so far, those promises haven&rsquo;t translated into actual groundbreakings for new factories, hirings of new engineering personnel, etc.
The more time that passes by, the more all of it seems like empty promises to placate the president.
On the other hand, the Journal tells us Apple has definitely set aside up to $100 billion for share buybacks.
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-2-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-2_2x-new.png 2x" alt="2" width="37" />About Those Inflation Numbers&hellip;
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />A &ldquo;cooler than expected&rdquo; inflation number is enough to propel the stock market to all-time highs today.
The Bureau of Labor Statistics regaled us this morning with the July consumer price index. The official inflation rate is running 2.7% year-over-year &mdash; a hair less than the 2.8% expected by the average Wall Street economist.
But &ldquo;cooler than expected&rdquo; belies the fact that inflation has been stuck in a range for over a year now &mdash; 2.4% on the low side, 3% on the high side.
<a href="https://paradigmpressroom.com/post/declare-your-independence-from-inflation">As we like to warn you periodically</a>, once inflation sails beyond 5% &mdash; as it did in 2022 &mdash; it typically takes a decade to get back to &ldquo;normal&rdquo; 2% inflation.
The current number would be worse were it not for food prices holding steady this summer &mdash; and a 2.2% month-over-month drop in gasoline prices.
<blockquote>➢ For the record: Trump has nominated Heritage Foundation economist E.J. Antoni as the new director of the Bureau of Labor Statistics. If approved by the Senate, he&rsquo;d replace Erika McEntarfer, who Trump fired earlier this month after a weak job number for July. On the few occasions I&rsquo;ve encountered Antoni&rsquo;s posts on social media, he&rsquo;s generally struck me as a straight shooter.</blockquote>
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />Anyway, with the inflation number running &ldquo;cooler than expected,&rdquo; Wall Street is rallying on the assumption the Federal Reserve will definitely cut short-term interest rates next month.
In the futures markets, traders are pricing in a 94% probability of a cut at the next Fed meeting&hellip; and a 50-50 shot at two more cuts before the end of the year.
With that, the S&amp;P 500 has powered 0.9% higher on the day, easily vaulting into record territory at 6,431. The Dow and the Nasdaq are both up a little over 1%.
Gold is treading water after yesterday&rsquo;s beatdown, the bid now $3,345. For the record, Trump said yesterday there would be no tariffs on gold imports after all &mdash; three days after gold tariffs were announced by U.S. Customs and Border Protection. Life comes at you fast&hellip;
Elsewhere, crude is down 1% to $63.28. Bitcoin&rsquo;s latest run for a record has come up short; the flagship crypto is back below $120,000.
After we hit &ldquo;send&rdquo; on yesterday&rsquo;s edition, Trump announced another 90-day pause on his tariff regime targeting China &mdash; buying still more time for trade negotiations. For the time being, U.S. imports from China will remain subject to a 30% levy while U.S. exports to China will be taxed by Beijing at 10%.
<blockquote>➢ This new executive order effectively fulfills the forecast that three of Paradigm&rsquo;s top editors made last week during our All-In Summit &mdash; a reset to U.S.-China economic relations that will unleash phenomenal new profit opportunities. If you&rsquo;re a Paradigm Mastermind Group subscriber, you won&rsquo;t want to miss a follow-up briefing tomorrow with Jim Rickards, James Altucher and Enrique Abeyta. For details, check your inbox for an email that should have arrived shortly after noon Eastern Time.</blockquote>
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-3-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-3_2x-new.png 2x" alt="3" width="37" />Sunny Vibe In Small-Business America
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> The mood on Main Street is the best since February &mdash; judging by the Small Business Optimism index put out each month by the National Federation of Independent Business.
The July number clocks in at 100.3 &mdash; the first over-100 reading in five months and up meaningfully from 95.8 two months earlier.
&ldquo;While uncertainty is still high,&rdquo; says NFIB chief economist Bill Dunkelberg, &ldquo;the next six months will hopefully offer business owners more clarity, especially as owners see the results of Congress making the 20% Small Business Deduction permanent and the final shape of trade policy.&rdquo;
On the part of the survey asking small-business owners to identify their single-most important problem, &ldquo;quality of labor&rdquo; is back in first place; 21% of respondents say good help is hard to find.
After passage of the &ldquo;Big Beautiful Bill,&rdquo; taxes have retreated to 17%, with inflation and poor sales tied for third place at 11%.
The respectable headline number notwithstanding, it&rsquo;s problematic that the &ldquo;poor sales&rdquo; figure keeps climbing &mdash; and is now the highest since February 2021.
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-4-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-4_2x-new.png 2x" alt="4" width="37" />Comic Relief
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />In light of today&rsquo;s inflation numbers&hellip;
The following meme might be a commentary on the rise of &ldquo;tech bros&rdquo;... but it might also be a reminder that your dollars don&rsquo;t go nearly as far these days as they used to&hellip;
<img class="aligncenter" src="https://images.ctfassets.net/vha3zb1lo47k/4BuWiM95hfcmrSG67HFwlD/4a9558f1560f015b81599ffdceb48fca/office.png" alt="office" width="540px" />
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-5-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-5_2x-new.png 2x" alt="5" width="37" />Mailbag: Trump&rsquo;s Silicon Valley Shakedown
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />After <a href="https://paradigmpressroom.com/post/extortion-racket">yesterday&rsquo;s edition</a> pulling apart the unprecedented arrangement between the Trump administration and chipmakers Nvidia and AMD, a reader writes&hellip;
&ldquo;At first, my reaction was the same; that this is a shakedown by the U.S. government.
&ldquo;Then I stepped back and had some questions: How much of their tech was paid for by the taxpayers in the first place, through research and development, etc.? Do these companies actually need to pay us back for that research?&rdquo;
Dave responds: The CHIPS and Science Act of 2022 &mdash; pushed through by the Biden administration with bipartisan support &mdash; was a game-changer in that regard.
The law allocated $39 billion in subsidies for domestic semiconductor manufacturing and another $13 billion for semiconductor research and workforce training.
The biggest subsidy &mdash; nearly $8 billion &mdash; went to Intel, a fact that made Trump comfortable last week with demanding the resignation of Intel CEO Lip-Bu Tan. (Trump changed his tune yesterday after the two met at the White House: &ldquo;His success and rise is an amazing story.&rdquo;)
That said, as far as we can tell Nvidia and AMD are not among the companies that have collected these subsidies.
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />We haven&rsquo;t had occasion to bring it up until now &mdash; but for a real in-your-face shakedown by the Trump administration, look no further than CBS.
I don&rsquo;t really want to go to bat for a legacy media firm here; longtime readers know I got into financial publishing because I <a href="https://paradigmpressroom.com/post/9-11-the-financial-crisis-and-covid">became disillusioned</a> with traditional media. And for the sake of full disclosure, I spent about a year on CBS&rsquo; payroll during a two-decade career in broadcast news.
With those disclaimers out of the way&hellip;
As you might be aware, 60 Minutes ran an interview with Kamala Harris last fall &mdash; and Trump sued CBS.
Nico Perrino of the nonpartisan Foundation for Individual Rights and Expression sets the stage&hellip;
<blockquote>Bill Whitaker is interviewing her. Bill Whitaker asked her a question about Israel, and she gave a two&ndash;three-sentence answer. In its broadcast, 60 Minutes uses the first part of that answer and leaves out the second part. In a social [media] promotion, it uses the second part of the answer and leaves out the first part. But both parts of the answer essentially say the same thing, but it's Kamala Harris. She speaks often in word salads and 60 Minutes edited for length and clarity, as all news programs do.</blockquote>
But Trump&rsquo;s people saw an opening to sue CBS in the state of Texas, alleging that the edits amounted to consumer fraud.
Here&rsquo;s the thing: Speech is protected under the First Amendment &ldquo;so long as you're not defaming anyone &mdash; and no one's alleging defamation here,&rdquo; Perrino said in a recent interview with Glenn Greenwald.
&ldquo;This is just another way to go after &lsquo;misinformation&rsquo;. [Our organization] opposed it when the Biden administration did it. Now we're opposing it when the Trump administration does it and calls it something else, whether it's consumer protection, consumer fraud or news distortion. These are all words for the same thing, and they're all protected by the First Amendment.&rdquo;
Seen in that context, Trump&rsquo;s suit would have been laughed out of court.
So why didn&rsquo;t CBS parent Paramount Global fight it hammer and tong? Why did Paramount agree to settle last month for $16 million?
Because Paramount wanted to merge with a firm called Skydance Media. And because CBS owns a couple dozen local TV stations licensed by the Federal Communications Commission, Trump&rsquo;s FCC had the authority to approve or reject the deal.
It&rsquo;s this simple: If Paramount didn&rsquo;t settle, the Trump administration would have nixed the merger.
Days after the suit was settled, the merger won FCC approval The deal was consummated last week.
Whatever your opinion of CBS, we&rsquo;ve entered real banana-republic territory.
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />We give Perrino the final word today: &ldquo;I'm not here to defend the media; all I'm here to do is to defend the First Amendment. 
&ldquo;If we are going to oppose using the tools of the federal government, or the most powerful person in the United States of America and the world, to prevent them from making an exception to the First Amendment for misinformation, then you need to stand against this, just like we needed to stand against it when the Biden administration alleged that social media companies were tweaking their algorithms to favor one thing or the other.
&ldquo;I mean, this is something that you need to stand against, regardless of who's in power.&rdquo;
Best regards,
<img class="aligncenter" src="https://media.paradigmpressgroup.com/signatures/dave-gonigam.png" alt="Dave Gonigam" width="250px" align="left" />
Dave Gonigam Managing editor, Paradigm Pressroom's 5 Bullets

buybacks

So far in 2025, U.S. firms have announced $983.6 billion in stock buybacks — the strongest start to a year in data going back to 1982. 

Good for Wall Street, Bad for Main Street

<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-1-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-1_2x-new.png 2x" alt="1" width="37" />The Nixon Shock
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> The plan to upend the global economic order wasn&rsquo;t hatched on Aug. 15, 1971, but in the days leading up to it. President Nixon gathered his top economic team in a secretive weekend summit at Camp David starting on the afternoon of Aug. 13.
Over those intense days &mdash; 54 years ago &mdash; power brokers including Treasury Secretary John Connally, Federal Reserve chair Arthur Burns and then-Treasury Undersecretary Paul Volcker debated the future of the gold standard and the dollar.

<img class="aligncenter" src="https://images.ctfassets.net/vha3zb1lo47k/5Hgbylqjc3s1MbH95aXkZz/217b9341b996880e1e6cbe9bf89d3d1b/Nixon.png" alt="Nixon" width="540px" />

Photo courtesy: federalreservehistory.org President Richard Nixon at Camp David with Fed Chair Arthur Burns (far left) and Treasury Secretary John Connally (second from left) in August 1971
Burns cautioned against closing the gold window, but the majority, swayed especially by Connally, pushed for action. Nixon decided to suspend the dollar&rsquo;s convertibility to gold <a href="https://5minforecast.com/2021/08/16/gold-and-great-nations/">temporarily</a> and impose a 10% surcharge on imports &mdash; moves supposed to protect the U.S. economy and wrest control from currency speculators.
Living up to its &ldquo;Nixon Shock&rdquo; moniker, not even key officials from the State Department were privy to the secret severing of the dollar&rsquo;s tie to gold. Meanwhile, Nixon timed his big speech to catch the Sunday night TV audience, ensuring maximum shock would ripple through a world wholly unprepared for the dawning of a new money era.
Over the 54 years since? Inflation has averaged around 3.9% annually, resulting in prices rising more than sixfold. What cost $2,500 in 1971, for example, would cost over $19,000 in 2025 &mdash; reflecting substantial long-term inflation pressure not seen before that period.
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-2-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-2_2x-new.png 2x" alt="2" width="37" />Three Reasons to Stay the Course
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> Understanding this pivotal moment in history helps explain why gold remains a vital asset today &mdash; especially as Paradigm editor Sean Ring highlights three compelling reasons to hold onto gold. 
First, the market trend for gold remains powerfully bullish. Sean points out gold is in a &ldquo;full-throttle, textbook&rdquo; uptrend with clear technical signals like a golden cross &mdash; when the 50-day moving average is well above the 200-day. He explains that price pullbacks have been brief and met with aggressive buying, proving the trend isn&rsquo;t over.
Selling now, Sean warns, is like getting off a climbing train halfway because you think the view can&rsquo;t get any better. But history shows gold&rsquo;s biggest gains often come after investors feel the gold market has peaked.
Second, Sean emphasizes the heavy tax consequences of selling. In the U.S., physical gold is taxed as a collectible at rates up to 28%, far above standard stock capital gains taxes. Add to that lower sale prices due to dealer markups and selling gold cuts deeply into your profits. Sean calls it &ldquo;financial lunacy&rdquo; to sell now, face a steep tax bill and miss out on future gains.
Last, Sean reminds that gold&rsquo;s primary role is as a financial insurance policy amid rising systemic risks. It is immune to earnings seasons or fiscal policy and has preserved value through centuries of crises.
With central banks buying gold aggressively, historic debt levels, growing geopolitical tensions and challenges to the dollar&rsquo;s reserve status, these structural forces driving gold higher remain very much in play. Selling now means sacrificing protection in an increasingly unstable world.
Sean&rsquo;s key takeaway: &ldquo;If you&rsquo;re holding gold right now, you&rsquo;re in a sweet spot: The chart looks great, the fundamentals are supportive and the alternative assets are far less appealing.&rdquo;
All told, gold&rsquo;s potential for dramatic gains remains very much alive. As Paradigm&rsquo;s macro authority Jim Rickards reminds: &ldquo;From 1971 to 1980, the price of gold soared over 2,100%. A replay today would put the price of gold at $75,000 per ounce.&rdquo;

[High-Priority: It&rsquo;s not every day a Paradigm VP hops on a plane to middle-of-nowhere western Utah.
But when this much money is at stake &mdash; $150 trillion &mdash; it&rsquo;s worth investigating on-site. And that&rsquo;s exactly what VP of Research Aaron Gentzler just did.
What he found in Utah confirms a Phase II boom of Jim Rickards&rsquo; &ldquo;American Birthright&rdquo; thesis that President Trump is unleashing now.
Historically, Phase II has been the most lucrative investing window across resource booms. Gains that could be 10X... 20X... even 100X bigger than what we&rsquo;ve seen from mining stocks so far this year.
Within a span of just three years, in fact, investors could&rsquo;ve seen rare peak returns of 7,500%... 20,183%... and you won&rsquo;t believe this&hellip; 140,000%.
That is not a typo. It&rsquo;s a genuine financial opportunity that was created by this rare Phase II pattern. And the story Aaron&rsquo;s investigating in Utah could be even bigger than Jim Rickards&rsquo; original prediction.
<a href="https://pro.paradigm-press.info/m/2469058">Check it out for yourself right here.]</a>

<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-3-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-3_2x-new.png 2x" alt="3" width="37" />Russell 2000: &ldquo;Negative Selection Bias&rdquo;
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />The Russell 2000, the bellwether index for small-cap stocks, just made headlines by leaping 4.8% this week. That&rsquo;s unusual for what Paradigm&rsquo;s trading pro Enrique Abeyta calls &ldquo;some of the worst stocks on Wall Street.&rdquo;
About 40% of Russell 2000 companies, in fact, lose money, compared with just 6% of S&amp;P 500 companies. And over the last decade, small caps have persistently lagged the broader market &mdash; no sugarcoating it: &ldquo;Small caps suck,&rdquo; Enrique quips.
However, this week&rsquo;s sudden surge prompts an important question: Could we be witnessing the beginning of a significant upside shift?
First, the Russell 2000 represents the smallest two-thirds of the Russell 3000, which covers the biggest U.S.-listed stocks. Despite comprising 2,000 companies, the total market cap of the entire Russell 2000 &mdash; less than $3 trillion &mdash; is less than the market cap of some individual companies, including Nvidia, Microsoft and Apple.
There&rsquo;s also a catch: According to Enrique, the Russell 2000 is set up with &ldquo;negative selection bias.&rdquo; For instance, once a company becomes too successful, it grows out of the index into the larger-cap Russell 1000.
Translation?
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />The Russell 2000 is built to lose its winners and keep the weaker hands. As Enrique puts it, these stocks are &ldquo;the small ships in the economic ocean&rdquo; &mdash; easily swayed by storms like recessions, interest-rate shocks or swings in commodity prices.
This structural weakness explains why the index has badly underperformed. In the past 15 years, the S&amp;P 500 has soared 500%, while the Russell 2000&rsquo;s gain is just 265%. That&rsquo;s before considering nearly half the index is unprofitable. Yet despite all this, small caps punched higher this week.
So what&rsquo;s giving small caps a lift now? Enrique says hopes for interest rate cuts. Small companies are especially sensitive to rates &mdash; their weaker balance sheets and tighter access to capital make them big beneficiaries of cheaper borrowing costs.
&ldquo;Lower rates could help them tremendously,&rdquo; he adds. &ldquo;Investors are getting excited about the possibility that the underperformance in small caps may finally reverse.
&ldquo;If the Fed cuts rates into a stable, growing economy, then the market&rsquo;s weakest stocks could become the fastest movers.
&ldquo;And when that shift happens,&rdquo; he concludes, &ldquo;you&rsquo;ll want to be ready for it.&rdquo;
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />Taking a look at stocks today, the Nasdaq (-0.50%) and S&amp;P 500 (-0.30%) are taking a breather at 21,590 and 6,445 respectively. In sympathy, the Russell 2000 is down about 0.70%. But the Big Board&rsquo;s up 0.20% to 45,000.
Turning to commodities, oil is down 1.20% to $63.20 for a barrel of WTI. Precious metals? The price of gold&rsquo;s up 0.15% to $3,388 per ounce. Silver, moving in the opposite direction, is down 0.15% to $38.
As for the crypto market, Bitcoin&rsquo;s lost 1%, just hanging onto $117K, while Ethereum is down 3.60% to $4,395.
And we have a couple economic numbers to report:
U.S. retail sales increased 0.5% in July, slightly underperforming economists&rsquo; expectations, but marking the second-straight monthly gain after a spring slowdown. The rise was driven largely by purchases of automobiles and home furnishings, reflecting some pre-tariff spending on big-ticket items.
According to the Federal Reserve, U.S. industrial production edged down 0.1% last month, slipping after a revised 0.4% gain in June.
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-4-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-4_2x-new.png 2x" alt="4" width="37" />Big Tech&rsquo;s Power Grab
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />Big Tech&rsquo;s AI data centers consume staggering amounts of electricity, fueling a rapid buildout of power plants and transmission lines.
If you&rsquo;re a regular 5 Bullets reader, you know we&rsquo;ve been tracking this story since Paradigm&rsquo;s science‑and‑tech expert Ray Blanco first flagged the AI-energy connection in January 2024. Managing editor Dave Gonigam has also warned for three summers about the fragility of America&rsquo;s power grid.
Here&rsquo;s the latest twist: Much of today&rsquo;s tension comes from outdated cost‑sharing models that spread transmission expenses across the board, without factoring in the enormous electricity demands of just a handful of corporate customers.
Research shows that even when utilities set special rates for data centers, those fees still don&rsquo;t fully cover the cost of building new power plants &mdash; effectively forcing everyday households and small businesses to subsidize Big Tech&rsquo;s energy appetite.
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />That means regular Americans and local companies are footing a disproportionate share of the bill.
Some states are starting to push back. Pennsylvania Gov. Josh Shapiro and other leaders have challenged steep price hikes from PJM Interconnection &mdash; the regional grid operator for much of the mid‑Atlantic &mdash; warning about unjustified costs hitting consumers.
<img class="aligncenter" src="https://images.ctfassets.net/vha3zb1lo47k/2B7DctjhwhpKNNtstxVGkt/5def5c8de00c4302ce258d21ffed1b65/WallStreetApes.png" alt="Wall Street Apes" width="540px" />
In fact, a 2024 report found that data center demand accounted for 70% of the region&rsquo;s electricity price increases last year, totaling $9.3 billion.
About a dozen states are now moving to shield ratepayers from carrying the full load. Oregon, one of the nation&rsquo;s top data center hubs, passed a law in June 2025 directing regulators to set new, presumably higher, electricity rates just for these massive facilities.
This, as Oregon residents have endured electric bills surging up to 50% in four years &mdash; while utility disconnections hit record highs.
Other proposals under consideration include requiring data centers to source their own power, a step that could ease the strain on the grid and place the cost burden squarely on the tech giants themselves.
Still, given how aggressively states compete to lure data centers, it&rsquo;s unclear whether policymakers will have the resolve to make Big Tech pay for the expensive transmission upgrades it drives &mdash; without sticking average Americans with the tab.
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-5-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-5_2x-new.png 2x" alt="5" width="37" />Working Hard at Hardly Working
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />In the heart of China, Shui Zhou clocks in at a faux office every morning &mdash; he&rsquo;s not really employed, but his days are packed. From 9 a.m. until late into the evening, Zhou sips tea, laughs with &ldquo;colleagues&rdquo; and occasionally sends staged photos home so his parents feel at ease.
Zhou now pays about 30 yuan ($4.20) daily to the Pretend To Work Company in order to keep up appearances of gainful employment.
This isn&rsquo;t some elaborate hoax, but a reality for thousands of young professionals priced out of China&rsquo;s shrinking job market. Indeed, it&rsquo;s a curious fix for a serious problem&hellip;
With youth unemployment stubbornly above 14% in 2025, China&rsquo;s job-seeking Gen Z are shelling out for a desk, WiFi, snacks and the illusion of success.

<img class="aligncenter" src="https://images.ctfassets.net/vha3zb1lo47k/ZgLpGP4KGGLr1Lqh8GINV/ea5d516ac422a570b5ccbdd50a2c4917/PretendWork.png" alt="pretend to work" width="400px" />

Courtesy: LinkedIn I suppose no one&rsquo;s getting business cards printed&hellip;
For others, like recent graduate Xiaowen Tang, the facade goes a step further: staged &ldquo;work&rdquo; photos sent to universities count as proof of internships required for graduation.
Meanwhile, the owner of the faux office, having once faced business failure himself, calls it &ldquo;the dignity of not being a useless person.&rdquo;
Some might call it a social experiment; others see symptoms of a broader economic malaise. Whatever the case, pretend-to-work companies are booming in cities like Shanghai and Shenzhen, echoing the quiet frustration of a generation caught in limbo.
Sure, these offices might run on delusion, but they&rsquo;re serving up something real: a sense of community that keeps everyone coming back.
Here&rsquo;s the million-yuan question: Does &ldquo;pretending to work&rdquo; count as work experience?
Take care, reader! Don&rsquo;t work too hard this weekend&hellip;
Best regards,
<img class="aligncenter" src="https://media.paradigmpressgroup.com/signatures/emily-clancy.png" alt="Emily Clancy" width="250px" align="left" />
Emily Clancy Associate editor, Paradigm Pressroom's 5 Bullets

gold

Paradigm editor Sean Ring highlights three compelling reasons to hold onto gold. 

Don’t Sell Your Gold Now! 

<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-1-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-1_2x-new.png 2x" alt="1" width="37" />Mafia Tactics?
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />&ldquo;This is literally just the U.S. government extorting private businesses. Capitalism is dead. The free market is dead,&rdquo; says a random comment on X.
The big business story of the day broke over the weekend: The Trump administration has granted export licenses to chipmakers Nvidia and AMD so they can sell their semiconductors in China &mdash; as long as they fork over 15% of the proceeds from those Chinese sales to the U.S. government.
&ldquo;The quid pro quo arrangement is unprecedented,&rdquo; says the Financial Times, which broke the story. &ldquo;According to export control experts, no U.S. company has ever agreed to pay a portion of their revenues to obtain export licenses.&rdquo;
&ldquo;It is unusual for companies to essentially pay for export licenses,&rdquo; adds The Wall Street Journal.
The criticism isn&rsquo;t coming just from free-market conservatives like the one we cited up top.
<blockquote>➢ The market reaction so far? NVDA and AMD shares opened the day flat compared with Friday&rsquo;s close. The big moves higher came in mid-July &mdash; when Trump first signaled he was open to letting the companies resume chip sales to China. No wonder: Global sales for both companies are now on track to jump at least 20%.</blockquote>
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> The news comes only days after Donald Trump opined on his Truth Social site that the CEO of another chipmaker should resign.
Trump said Intel chief Lip-Bu Tan is &ldquo;highly conflicted&rdquo; on account of his previous business ties in China. (Tan is Malaysian-born, and a U.S. citizen who&rsquo;s spent the entirety of his business career in America.)
The problem for Tan is that he&rsquo;s been on the job only since March. He inherited a major decision by his predecessor &mdash; to accept nearly $8 billion in subsidies from the Biden administration under the CHIPS and Science Act of 2022.
Intel is the biggest single recipient of these subsidies. You take the government&rsquo;s money, you dance to the government&rsquo;s tune.
According to The Wall Street Journal, Tan is paying a call on the White House today. What sort of deal might come out of that meeting?
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> You might or might not approve of these tactics on the part of the president. But whatever your opinion&hellip;
&hellip; it comes back to a point we try to emphasize whenever politics intrudes on commerce.
Politicians make decisions every day that alter the flows of billions of dollars.
Whether it&rsquo;s backroom deals on Capitol Hill or executive orders coming from the White House, successful investing means positioning yourself so you can capture some of those flows, whatever you might think about government&rsquo;s role in the economy.
Really, that was the entire subtext to the Paradigm All-in Summit we held last Thursday &mdash; bringing together Jim Rickards, James Altucher and Enrique Abeyta. If you&rsquo;re a Paradigm Mastermind Group member, you already have an idea what we&rsquo;re talking about.

These three frequently have differing worldviews and differing investment approaches. But right now they&rsquo;re all in on a single idea &mdash; one that will be propelled by a White House announcement likely coming either today or tomorrow.
Little wonder that Paradigm publisher Matt Insley sent you an email yesterday saying he believes &ldquo;you&rsquo;ll look back on this moment years from now as the most critical turning point of your wealth-building journey.&rdquo;
If you haven&rsquo;t watched our all-in event, this is the time. <a href="https://pro.paradigm-press.info/m/2467533">Click here now so you&rsquo;ll still </a><a href="https://pro.paradigm-press.info/m/2467533">have</a><a href="https://pro.paradigm-press.info/m/2467533"> &ldquo;first mover&rdquo; advantage before this imminent announcement</a>.

<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-2-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-2_2x-new.png 2x" alt="2" width="37" />Profitable &ldquo;Misinformation&rdquo;
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />Speaking of decisions in Washington that alter money flows&hellip; the spot price of gold has tumbled over $50 to $3,344, its lowest level since the start of the month. 
When we left you on Friday, the Financial Times had a scoop about the Trump administration planning to impose tariffs on imports of one-kilo and 100-ounce gold bars &mdash; a historic first. Gold futures soared to record highs.
But while the markets were closed over the weekend, anonymous administration officials told Reuters and Bloomberg that Trump would soon issue an executive order that would clarify &ldquo;misinformation&rdquo; about these gold tariffs.
It&rsquo;s hard to shake the thought that somebody had inside knowledge of these leaks&hellip; and acted on it.
<img class="aligncenter" src="https://images.ctfassets.net/vha3zb1lo47k/20cFWRdmHnCz7RUZuEF8Sc/396a05f350da78a6c465cca27b7e74b8/DonTweet.png" alt="DonTweet" width="540px" />
Last month, similar hinky activity showed up in other asset classes: heavy selling of Tesla shares began minutes before Trump announced tariffs on batteries from China&hellip; a rally in the dollar minutes before Trump said he doesn&rsquo;t intend to fire Fed chair Jerome Powell&hellip; a plunge in Nasdaq futures minutes before Trump declared new tariffs on Canada and Europe&hellip;
No, there&rsquo;s no smoking gun that administration insiders are front-running these announcements. But someone&rsquo;s making a lot of money off them.
Anyway, silver got whacked alongside gold &mdash; the bid down 60 cents to $37.67.
Crypto is faring much better than the precious metals &mdash; Bitcoin rallying big yesterday and bigger earlier today, getting oh-so-close to last month&rsquo;s record over $122,000. It&rsquo;s since pulled back to $120,220.
Ethereum, meanwhile, finally broke through the $4,000 barrier and now rests over $4,300 &mdash; the highest since late 2021.
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />As for stocks, it&rsquo;s a mixed bag to start the week. 
At last check the S&amp;P 500 has inched into record territory, four points shy of 6,400. The Nasdaq is posting a slightly stronger gain, while the Dow is slightly in the red.
&ldquo;The S&amp;P has erased the majority of its early August losses,&rdquo; Greg Guenthner writes his Trading Desk readers. &ldquo;But fresh inflation data will test the bulls' conviction later this week. A more pronounced pullback this month remains likely.&rdquo;
Here, Greg is eyeing SPY, the giant S&amp;P 500 ETF &mdash; trading at $637.47 as we check our screens. &ldquo;The likelihood of a flush lower increases on a weekly close below 625.50,&rdquo; he says.
&ldquo;Regardless, we must respect this stubborn &lsquo;stocks only go up&rsquo; rally until cracks appear in the averages. Let&rsquo;s see how stocks stand up against this week&rsquo;s consumer price index and a handful of earnings reports.
&ldquo;The S&amp;P 500 could just as easily print a new all-time high as a two-week low by Friday.&rdquo;
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-3-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-3_2x-new.png 2x" alt="3" width="37" />A Clean 10x in One Year
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> Decisions from D.C. figure into today&rsquo;s Bullet No. 3 as well: For the second time this year, a White House announcement has propelled shares of Fannie Mae higher.
In May, the president said he was giving &ldquo;very serious consideration&rdquo; to taking the mortgage giant private; it&rsquo;s been under government control since the 2008 financial crisis.
After we hit &ldquo;send&rdquo; on Friday&rsquo;s edition, The Wall Street Journal reported the administration is preparing to sell stock in both Fannie Mae and Freddie Mac. FNMA shares soared 20% on the news &mdash; and they&rsquo;re up another 10% this morning.
Several Paradigm analysts have been pounding the table on FNMA over the last year&hellip;
<ul>
<li>A year ago at this time, Dan Amoss recommended FNMA in Jim Rickards&rsquo; Situation Report; as of today, readers are sitting on a 1,000% gain</li>
</ul>
<ul>
<li>Chris Cimorelli talked up FNMA last October during our &ldquo;America&rsquo;s Next Move&rdquo; gathering in Baltimore</li>
</ul>
<ul>
<li>Davis Wilson told readers of The Million Mission in February that FNMA is <a href="https://million-mission.com/posts/buy-alert-extremely-rare-5x-return-opportunity?vid2=f7584bb8d0f8b4ef03ea4a2a79cb9ffebd5601637dfb4b221b21055bfe10aa56fb9565c7166c12ea93687031263ed97489aead8f437e4ddd1cfcbcd5e6a6bb06&amp;utm_campaign=FMF_Issue_05.22.25&amp;utm_source=Iterable&amp;itbl_templateId=17820277&amp;itbl_campaignId=13629573&amp;utm_medium=Email">an &ldquo;extremely rare 5x return opportunity.&rdquo;</a> He picked up 2,500 shares of FNMA at $7.25. As we write this morning, it&rsquo;s a penny shy of $11.</li>
</ul>
Still, Davis is leery of the market reaction to Friday&rsquo;s announcement: &ldquo;Is this based on fundamentals, or just headline hype? Right now, it&rsquo;s clearly the latter.
&ldquo;The real value here depends on what the IPO structure looks like, how much equity is actually released to public shareholders, and whether the government keeps a heavy hand on operations.&rdquo;
That&rsquo;s a lot of ifs. But Davis is holding on tight &mdash; while advising readers, &ldquo;Don&rsquo;t be surprised if this continues whipsawing higher and lower.&rdquo;
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-4-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-4_2x-new.png 2x" alt="4" width="37" />Not So Natural
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> France&rsquo;s purest mineral water might not be as pure as it claims to be? Sacre bleu!
<img class="aligncenter" src="https://images.ctfassets.net/vha3zb1lo47k/6qlIEwObjuukOBbIw8VJL3/706e315a5f2dfbca092bb09b27d6a985/BBCNews.png" alt="BBC News" width="540px" />
A year ago, the newspaper Le Monde and Radio France revealed that at least a third of &ldquo;mineral water&rdquo; sold in the country had in fact been treated &mdash; whether by ultraviolet light, carbon filtering or mesh material.
The problem is that under European Union law, anything marketed as &ldquo;natural mineral water&rdquo; should have nothing coming between the spring and the bottle.
And yes, the most popular names including Perrier and Evian are implicated in this scandal.
Reports the BBC: &ldquo;Complicating matters for Perrier and its parent company Nestl&eacute; &mdash; as well as President Emmanuel Macron's government &mdash; is the charge that executives and ministers conspired to keep the affair quiet, covered up reports of contamination and re-wrote the rules so that Perrier could continue using micro-filtration.&rdquo;
Legacy media outlets are trying to spin this story as a global-warming thing: Several years of drought have brought on fears of contamination &mdash; thus, the producers of mineral water resort to filtering or other treatment.
"The commercial model of the big producers has worked very well,&rdquo; hydrologist Emma Haziza tells the BBC. &ldquo;But it is absolutely not sustainable at a time of global climate change,:&rdquo;
For its part, Perrier denies that contaminants are entering the deep-water aquifers.
In any event, the upshot is that within a few months, EU authorities might forbid Perrier to market itself as natural mineral water.
Little wonder that over the last year or so, the company has pivoted to a brand of energy drinks and flavored water called &ldquo;Maison Perrier.&rdquo; No issues with these products being filtered&hellip;
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-5-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-5_2x-new.png 2x" alt="5" width="37" />Finding Courage
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />High praise in the mailbag for Paradigm trading pro Enrique Abeyta, after his guest column on Saturday.
&ldquo;Hello Enrique &mdash; people have always told me that stock options are the best way to lose everything you have. Because of that, I have avoided learning more.
&ldquo;<a href="https://truthandtrends.com/posts/ken-griffin-is-full-of-sh-t">Your article</a> this morning makes so much sense. The big boys don&rsquo;t want other people playing in their lane. I have downloaded the e-book you recommended. Thank you for giving me the courage to start looking into stock options Investing.&rdquo;
Dave responds: We made sure Enrique saw your note, and he conveys his thanks for your kind words.
For anyone else looking to dip their toe into options, we publish <a href="https://concierge.paradigmpressgroup.com/post/paradigm-press-presents-the-ultimate-beginners-guide-to-stock-options?vid2=25fbe7ad9f9d91506407e0738f037e6eb6d96bab7f5cbad125fbd82fa5aebaf396a52c5621159115b5b6caf882b59582&amp;utm_campaign=PROOF_CAMPAIGN_NAME&amp;utm_source=Iterable&amp;itbl_templateId=18075565&amp;itbl_campaignId=-12345&amp;utm_medium=Email">The Ultimate Beginner&rsquo;s Guide to Stock Options</a>.

And for the investment idea that Enrique is most enthusiastic about right now&hellip; we direct your attention once more to the recent Paradigm All-In Summit. He, Jim Rickards and James Altucher have all rallied around one company that&rsquo;s poised to soar after an announcement from the White House either today or tomorrow. <a href="https://pro.paradigm-press.info/m/2467533">Once more, check it out right here while there&rsquo;s still time</a>.

Best regards,
<img class="aligncenter" src="https://media.paradigmpressgroup.com/signatures/dave-gonigam.png" alt="Dave Gonigam" width="250px" align="left" />
Dave Gonigam Managing editor, Paradigm Pressroom's 5 Bullets

Extortion

The Trump administration has granted export licenses to chipmakers Nvidia and AMD so they can sell their semiconductors in China. 

Extortion Racket

White-paper

Silicon Valley is getting on board with the White House: Big money is shifting away from digital technology and software… 

The Plan (Reviving American Industry)

<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-1-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-1_2x-new.png 2x" alt="1" width="37" />Trump: &ldquo;Let&rsquo;s Blow This TACO Stand&rdquo;
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />The TACO trade is falling apart as a new week begins.
The term &ldquo;TACO&rdquo; as applied to finance began with Financial Times columnist Robert Armstrong three months ago. At the time, Donald Trump had a tendency to back down from his most extreme tariff threats against other countries.
Thus, TACO &mdash; &ldquo;Trump always chickens out.&rdquo;
Right or wrong, the term took off on Wall Street and in the financial media. And on the assumption that &ldquo;chickening out&rdquo; generally translates to &ldquo;rising stock prices&rdquo;... well, the TACO trade has been a winner. From the date of Armstrong&rsquo;s column (May 2) through Friday&rsquo;s market close, the S&amp;P 500 rose 9.7%. Not bad for three months!
And that includes Friday&rsquo;s steep drop of 1.6% &mdash; brought on in part by the realization that Trump might not back down after all.
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />The key date to watch this week is Thursday &mdash; when twin tariff deadlines loom.
The one that&rsquo;s getting all the buzz is the one mentioned here on Friday &mdash; a raft of tariffs Trump declared against dozens of countries, with rates ranging between 10&ndash;50%.
In theory, there&rsquo;s still time between now and Thursday for those countries&rsquo; leaders to come to terms with Washington on a trade deal. But how likely is that at this stage?
But it&rsquo;s the other tariff deadline Thursday, the one getting much less publicity, that could have more impact. That&rsquo;s the one targeting anyone who buys energy from Russia. Unless Russia and Ukraine reach a ceasefire in the next three days, all countries that buy Russian energy will be subject to a tariff of 100%.
That would include major trading partners like China and the European Union.
Between the tariff threats and Friday&rsquo;s punk job numbers &mdash; more about those in Bullet No. 3 &mdash; the vibe coming into this week is&hellip; disquieting. &ldquo;Trump Tariffs Inject More Uncertainty Into Global Economy,&rdquo; says a CNBC headline, accompanied by the same stock photo of &ldquo;worried trader&rdquo; the station always trots out at times like these.
<img class="aligncenter" src="https://images.ctfassets.net/vha3zb1lo47k/5NCGTlWLCbFtNt89HsCXgZ/0291cbde181ae48d14b3993c0800523e/CNBC.png" alt="CNBC" width="540px" />
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> And yet&hellip; three of Paradigm&rsquo;s top gurus are coalescing around one company they agree is a screaming &ldquo;buy.&rdquo;
That includes our macroeconomics maven Jim Rickards &mdash; who&rsquo;s very choosy about stocks and who&rsquo;s told his readers all along to ignore the TACO talk.
It also includes our AI-and-crypto bull James Altucher &mdash; who frequently takes issue with Jim Rickards&rsquo; outlook.
And it includes our hedge fund veteran Enrique Abeyta &mdash; a trader&rsquo;s trader who zeroes in on price action more than on macroeconomic and fundamental factors.
Only twice in our firm&rsquo;s history have all three of these gentlemen agreed on a single name&hellip;
<ul>
<li>Palantir Technologies &mdash; last year&rsquo;s top performer in the S&amp;P 500. Paradigm&rsquo;s official position is up 820% in 18 months</li>
</ul>
<ul>
<li>MP Materials &mdash; a very recent winner spotlighted in this space. In only two weeks, our official recommendation leaped 918%.</li>
</ul>
This time the potential gains are even greater &mdash; by our team&rsquo;s calculations, 1,494% by next year&hellip; 3,523% by the end of Trump&rsquo;s term&hellip; even a staggering 18,015% by the end of the decade.
Paradigm Mastermind Group members will be getting this recommendation later in the week. If you&rsquo;re not among them, you won&rsquo;t want to miss a one-of-a-kind event called The Paradigm All-In Summit.
It&rsquo;s set for Thursday at 1:00 p.m. EDT. Attendance is free, but we do ask that you sign up in advance so we know how many people to expect.
<a href="{{link}}">Sign-up is as simple as clicking on this link</a>; we&rsquo;ll email you everything you need to know so you&rsquo;ll be ready for Thursday.

Clicking the link above automatically registers you for The All-In Summit. By reserving your spot, you will receive event updates and offers. We will not share your email address with anyone. And you can opt out at any time. <a href="https://paradigmpressgroup.com/privacy-policy">Privacy Policy.</a>

&nbsp;

<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-2-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-2_2x-new.png 2x" alt="2" width="37" />About Friday&rsquo;s Sell-Off&hellip;
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />Now to put the market jitters in further context: Stocks were due for a rest. If it weren&rsquo;t tariffs and the job numbers, it would be something else.
Going into Friday&rsquo;s sell-off, Paradigm chart hound Greg Guenthner wrote the following to his Truth &amp; Trends readers: &ldquo;The S&amp;P 500 would have to drop nearly 7% just to retest its 200-day moving average. The red-hot Nasdaq Composite would need to fall 10% to retest the same level.
&ldquo;Neither move would meaningfully impact their longer-term uptrends.&rdquo;
Greg sees parallels between the post-&rdquo;Liberation Day&rdquo; rally that started April 9, 2025&hellip; and the rally that started March 23, 2020. That&rsquo;s when the Federal Reserve cranked up the printing presses amid COVID lockdowns.
Five years ago, he says, &ldquo;The rally off the COVID lows topped out in late August and produced not one but two meaningful corrective moves of approximately 10% heading into the start of the fourth quarter.&rdquo; Take a look&hellip;
<img class="aligncenter" src="https://images.ctfassets.net/vha3zb1lo47k/18sZZvlEceeIq41lzzMh8s/47e0faead2f0503bcdd6fb2585f1cef8/s_P500.png" alt="S&amp;P500" width="540px" />
&ldquo;A seasonal slowdown or sell-off would also make sense here,&rdquo; Greg goes on. &ldquo;August has a reputation as an unpredictable and sometimes tumultuous month. September also tends to be volatile. Turning to the post-election year cycle, we tend to see the market peak in late July/early August and remain choppy through late October.&rdquo;
If you want to pinpoint a date when the market could launch a new rally, Greg suggests Oct. 17 &mdash; which is options expiration Friday. Mid-October marked the start of healthy rallies in both 2022 and 2023.
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />In the meantime, the major stock indexes are bouncing off of Friday&rsquo;s lows.
In early Monday trade, the S&amp;P 500 is up more than 1%, back over 6,300. The Dow&rsquo;s gains are more modest, the Nasdaq&rsquo;s stronger.
As for nondollar assets, gold is back within about $20 of $3,400; silver is back over $37. Bitcoin is staging a recovery from a late July-early August slump. From lows near $112,000 early Sunday it&rsquo;s back over $115K.
Elsewhere, oil is down over 2.5% to $65.70 after several OPEC nations including Saudi Arabia announced another production boost. For all intents and purposes, the production cuts put into place during 2023 have all been reversed now.
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-3-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-3_2x-new.png 2x" alt="3" width="37" />About the &ldquo;Rigged&rsquo; Job Numbers&hellip;
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />The monthly job numbers are indeed &ldquo;RIGGED&rdquo; &mdash; but not necessarily in the way Donald Trump means it.
As mentioned here on Friday, the July job numbers came in weaker than expected. Further, the June and May numbers were revised sharply downward.
After Emily hit &ldquo;send&rdquo; on that edition, Trump fired Erika McEntarfer &mdash; commissioner of the Bureau of Labor Statistics &mdash; complete with an accusation that she gamed the stats to make him look bad.
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> The reality is that the monthly job numbers have been gamed for decades. 
The 10% unemployment rate during Barack Obama&rsquo;s first term (2010) was not the same 10% unemployment rate during Ronald Reagan&rsquo;s first term (1982&ndash;83).
In the interim, the wonks at the Bureau of Labor Statistics steadily redefined what it meant to be &ldquo;unemployed.&rdquo;
During the Reagan years, the official &ldquo;U-3&rdquo; unemployment rate included part-timers who wanted to work full time. It also included folks who&rsquo;d given up looking for work.
But in the decades since, those people were increasingly excluded from U-3.
Folks who&rsquo;d given up looking for work and hadn&rsquo;t looked for work in at least 12 months? They just didn&rsquo;t count anymore. Meanwhile, those who&rsquo;d given up looking for work within the previous 12 months, as well as the part-timers seeking full-time gigs, got lumped into a new unemployment rate called &ldquo;U-6.&rdquo;
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />The consequences of all this statistical sleight-of-hand have been dramatic. 
In May of 2023, for instance, the official U-3 unemployment rate was a stellar 3.6%. But if you ran the numbers the way they were in the early 1980s, it would be&hellip;
[drumroll, please&hellip;]
&hellip; 24.7%.
That&rsquo;s according to economist John Williams, who&rsquo;s made a career out of running the numbers the old-fashioned way at his Shadow Government Statistics research firm.
We&rsquo;ll leave it to others to analyze whether the 2025 job numbers have been jimmied to make Trump look bad.
But at least now you know some history about how the numbers have long been fiddled with to make the job market look better than it really is.
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-4-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-4_2x-new.png 2x" alt="4" width="37" /> Comic Relief
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />This meme more or less speaks for itself&hellip;
<img class="aligncenter" src="https://images.ctfassets.net/vha3zb1lo47k/I1Tza1BHVz8Qld1YMzHa8/5aecff5449affa685c83ef7eb3f5c733/Diagram.png" alt="diagram" width="350px" />
Just a reminder about why we keep getting mileage out of the Epstein story: He was a finance guy, after all &mdash; and one whose sources of wealth remain a mystery to this day.
Furthermore, Epstein&rsquo;s connections spotlight the intersection of finance, politics and media.
There&rsquo;s still no better illustration of this phenomenon than <a href="https://5minforecast.com/2019/07/08/its-a-big-club-and-you-aint-in-it/">something I wrote in the summer of 2019</a>, about an elite party held one night in the Hamptons. It turned out that at the very moment the party was underway, <a href="https://5minforecast.com/2019/07/09/jeffrey-epstein-and-the-media-finance-politics-nexus/">Jeffrey Epstein was being arrested on federal charges</a> of trafficking underage girls.
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-5-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-5_2x-new.png 2x" alt="5" width="37" />The Mailbag: Misperceptions
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />&ldquo;I think you did a good job of explaining some terms and how things will work in areas of crypto,&rdquo; a reader writes after <a href="https://paradigmpressroom.com/post/the-usd4-trillion-crypto-quake">James Altucher&rsquo;s guest essay last week</a>.
[We&rsquo;ve been at this long enough to know there&rsquo;s a &ldquo;but&rdquo; coming&hellip;]
&ldquo;BUT James and Paradigm are continuing to distract people by promoting the same cryptos that got a free pass and CNBC and others push as well.
&ldquo;Yes, Ethereum did improve things, which is good. And they will rise in price and BTC could double, but you are not talking about the little elephant in the room that is the ONLY crypto with LEGAL clarity that it is NOT a security.
&ldquo;This crypto is better than both of the others in the long run, certainly percentage-growthwise. Once the CLARITY Act passes, the flood gates will open. Ethereum has improved, but it still is not as good nor as connected worldwide with institutions and banks as Ripple and its XRP.
&ldquo;I can only assume that Paradigm along with the other big insiders do not want the XRP price to go up yet so they can buy in early before the 18&ndash;20 companies get their ETF approval to list it. Those ETFs will dwarf Ethereum and could surpass BTC with speed and market cap.&rdquo;
Dave responds: I assure you that no Paradigm editor would ever resort to the kind of front-running you describe.
Believe me, whenever James Altucher and Chris Campbell have the conviction that a certain crypto is about to take off like a rocket thanks to a regulatory catalyst&hellip; they collaborate with our marketing folks to get the word out.
Think about it. Why would they want to deprive readers of such a terrific opportunity? The basic business proposition in our line of work is this: Our editors prosper when our readers prosper.
The simple fact is that at this time, James and Chris lack the conviction you have.
In the past, I&rsquo;ve even spoken with Chris about the fervor bordering on obsession that some people have with XRP (along with Iraqi dinar and Indonesian rupiah banknotes, it seems).
Those folks are entitled to their opinions. But Chris and James have done the work, and they&rsquo;re not persuaded. No ulterior motives.
It&rsquo;s that simple. Just wanted to nip any misperceptions in the bud&hellip;
<img class="aligncenter" src="https://images.ctfassets.net/vha3zb1lo47k/1S3ttjovhOX6n70ewlotZ0/2258195b49208db76be3620863c5af59/bud.png" alt="bud" width="350px" />
Best regards,
<img class="aligncenter" src="https://media.paradigmpressgroup.com/signatures/dave-gonigam.png" alt="Dave Gonigam" width="250px" align="left" />
Dave Gonigam Managing editor, Paradigm Pressroom's 5 Bullets
P.S. Apologies in advance, but due to extenuating circumstances your 5 Bullets experience this week might be a little unusual. Some days like today you&rsquo;ll hear from me. Others you might be treated to a guest essay. Too, the arrival times of your issues might be irregular (like today).
Thanks for your patience. We&rsquo;ll be back to a more regular rhythm late this week or early next.

Tacos

The key date to watch this week is Thursday — when twin tariff deadlines loom.

Trump: “Let’s Blow This TACO Stand”

<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-1-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-1_2x-new.png 2x" alt="1" width="37" />For Every Action&hellip;
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> Lithium stands as the white &ldquo;gold&rdquo; of the 21st century. This lightweight, highly reactive metal powers the batteries that run electric vehicles (EVs), store renewable energy and underpin the &ldquo;green&rdquo; technology revolution.
And as global demand surges, the largest lithium deposits are inviting worldwide attention &mdash; and inviting some unintended consequences.
In Chile&rsquo;s Atacama Desert, one of the richest lithium sources on earth, mining uses up to 65% of local water supplies.
In this drought-prone region, water is life &mdash; for ecosystems, for rare species like flamingos and for communities whose livelihoods depend on scarce water resources.

<img class="aligncenter" src="https://images.ctfassets.net/vha3zb1lo47k/2xPJFwWXTLRVJZnGTvYh1x/c919e5d0835c6c70688390447199df7c/Chili.png" alt="chili" width="540px" />

Atacama Desert, Chile: The Earth&rsquo;s driest desert Courtesy: X
Over time, shrinking lagoons have scarred the landscape, altered fragile habitats and put pressure on the local economy and traditional ways of life.
Yet, Chile&rsquo;s lithium plays a crucial role, enabling &ldquo;cleaner&rdquo; energy technologies. EVs for instance, release fewer emissions than gasoline-powered cars.
However, extracting lithium is resource-heavy and energy-intensive. For every ton of lithium produced? Fifteen tons of carbon dioxide are released, according to MIT research.
Sprawling mining operations, in fact, can create environmental impacts sometimes worse than fossil fuel extraction itself.
This reality reveals a hard truth: Cleaner technologies depend heavily on minerals that aren&rsquo;t harvested without consequence.
Recognizing this fact doesn&rsquo;t dismiss the importance of lithium; rather, it calls for smarter mining using better technology&hellip;
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-2-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-2_2x-new.png 2x" alt="2" width="37" />&hellip; An Equal (and Opposite?) Reaction
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />In the Democratic Republic of Congo (DRC), the sprawling Manono lithium project holds some of the world&rsquo;s richest reserves. 
This strategic asset has long been entangled in complicated deals involving foreign powers, ranging from Chinese state-backed companies to Australian mining firms with historical claims
Recently, startup KoBold Metals &mdash; backed, in part, by American billionaires Jeff Bezos and Bill Gates &mdash; secured a major agreement with the DRC government to develop these lithium resources.
<img class="aligncenter" src="https://images.ctfassets.net/vha3zb1lo47k/kg36YdgMhDnkyluWiLhcJ/cde31f3924115d25491cf95742fac33e/BusinessInsider.png" alt="business insider" width="540px" />
KoBold combines cutting-edge artificial intelligence with mining expertise to map and extract minerals with more precision.
This tech-driven approach promises to boost production efficiency and reduce environmental disruption compared to traditional methods.
The company&rsquo;s $1 billion investment aims to diversify lithium supply chains, lessening global reliance on dominant players, and bringing U.S.-friendly alternatives into the mix.
The takeaway is clear: lithium&rsquo;s significance in the energy sector is indisputable. But there are enormous trade-offs. At this stage, the challenge lies in carefully managing and mitigating the risks involved.
For investors? &ldquo;Energy was once written off &mdash; until it wasn&rsquo;t,&rdquo; says Paradigm editor Davis Wilson. &ldquo;The same setup could be unfolding for lithium today.&rdquo;
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-3-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-3_2x-new.png 2x" alt="3" width="37" />&ldquo;Fundamentals of Gold&rdquo;
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />&ldquo;I want to cover the fundamentals of gold,&rdquo; says Paradigm&rsquo;s macro expert Jim Rickards. To do so, he poses a series of questions. First: What makes gold a good diversifying tool?
&ldquo;Gold prices do not correlate closely to stock prices,&rdquo; he says. &ldquo;Gold and stocks are driven by separate factors. That makes gold a good diversification asset for portfolios that are heavy in stocks.
&ldquo;When a portfolio is highly diversified, it can produce higher expected returns without adding risk. The difficult part is finding asset classes that really are diversified.
&ldquo;Buying 50 different stocks is not diversification since you only have one asset class &mdash; stocks &mdash; and the behavior of various shares will be highly correlated in times of stress.
&ldquo;Gold is genuinely diversified from stocks and will improve portfolio returns.&rdquo;
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> Who should add gold to their portfolios, and how much should they allocate?
&ldquo;Every investor should have an allocation to gold in his portfolio. It's an excellent diversification and can be a powerful asset to have in the face of natural disaster, infrastructure collapse or social unrest.&rdquo;
Jim notes: &ldquo;I recommend a 10% allocation of investable assets. In calculating investable assets, you should exclude home equity and the value of any private business.
&ldquo;Don&rsquo;t gamble with your house and livelihood. Whatever is left (stocks, bonds, real estate, etc.) are your investible assets. Allocate 10% of that amount to gold.
That allocation is high enough that you&rsquo;ll make significant profits (and protect against losses in the rest of your portfolio) if gold soars, but small enough that your overall portfolio won&rsquo;t be hurt badly if gold goes down.
&ldquo;A 10% allocation is the sweet spot for both profits and downside protection,&rdquo; he repeats.
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> Why is gold a good hedge against inflation?
&ldquo;Gold is priced in dollars. Inflation means the dollar is worth less in terms of purchasing power. That means it takes more dollars to buy gold, so the dollar price of gold goes up.
&ldquo;What you may lose in the rest of your portfolio in terms of dollar purchasing power is made up, in part or all, on the profits you make from the higher dollar price of gold,&rdquo; says Jim.
&ldquo;Inflation has a way of sneaking up on investors in small increments and can do a lot of damage before investors see it for what it is.
&ldquo;Owning gold will protect you from that. You&rsquo;ll have your inflation protection in place 24/7 and won&rsquo;t be caught off-guard.&rdquo;
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> Why is it smart to own gold in times of global conflict/political turmoil?
&ldquo;Geopolitical conflicts and political turmoil often result in unforeseen consequences,&rdquo; Jim adds.
&ldquo;These consequences can include supply chain disruptions, economic sanctions, asset seizures and freezes&rdquo; &mdash; see below &mdash; &ldquo;bond defaults, bank failures and inflation.
&ldquo;Oil prices can spike if key waterways are closed or a vessel is sunk. Economic sanctions and financial warfare can cause recession or a banking crisis almost overnight.
&ldquo;Assets such as stocks, bonds, real estate, etc. can be adversely affected by such changes without warning.
&ldquo;Gold tends to be insulated from such shocks because there is no issuer, no creditor and no country involved. It's just gold. That means you can hold it safely and wait out the turmoil without adverse effects.
&ldquo;The bottom line is gold anchors the rest of a diversified portfolio. It is physical so it is not easily frozen like government fiat.
&ldquo;It offers diversification because it does not correlate to other asset performance. It is the best hedge against inflation.
&ldquo;Gold should not dominate any portfolio,&rdquo; concludes Jim, &ldquo;but it should be part of every portfolio.&rdquo;
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-4-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-4_2x-new.png 2x" alt="4" width="37" />About That Fed Rate Cut&hellip;
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />Jim Rickards&rsquo; <a href="https://paradigmpressroom.com/post/wall-streets-ai-blindspot#2">forecast</a> of a Federal Reserve rate cut is gaining credibility &mdash; especially in light of the Fed&rsquo;s &ldquo;dual mandate&rdquo;: controlling inflation and unemployment.
To wit, the July 2025 U.S. jobs report shows a slowdown in job growth with only 73,000 new jobs added &mdash; well below economists&rsquo; expectation of 100,000. The unemployment rate rose slightly to 4.2%, marking an increase from June's 4.1%.
The data, in fact, reflects the lowest monthly increase recorded in 2025. Notably, the labor force participation rate has declined, and manufacturing hiring has stalled amid tariff uncertainty.
Speaking of, the ISM Manufacturing index dropped from 49.0 in June to 48.0 in July &mdash; markedly lower than analysts' prediction of 49.5. (For reference, any number under 50 suggests contraction.)
&ldquo;The job market looks significantly worse today than it did before this report,&rdquo; says Jed Kolko of the Peterson Institute for International Economics. Well, yes&hellip; 
Here&rsquo;s an interesting factoid, courtesy of The Wall Street Journal: &ldquo;A year and a half ago, the economy needed to add 166,000 jobs a month to keep the labor market steady, according to Kolko. As of June, Kolko said, the needed number was only 86,000.&rdquo;
&ldquo;It&rsquo;s fallen so much because this immigration surge has ended,&rdquo; Kolko says. &ldquo;In other words, a job creation number that might have looked lackluster a year and a half ago,&rdquo; WSJ adds, &ldquo;might actually be strong today.&rdquo; Hmm&hellip; 
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> On Thursday, President Trump signed executive orders setting new reciprocal tariffs ranging from 10&ndash;41% on imports from 69 countries. 
Most tariffs will take effect on August 7, allowing Customs and Border Protection time to adjust and giving countries an opportunity to negotiate better terms.
However, Canada faces an immediate tariff increase from 25% to 35%, starting today. According to President Trump, this prompt action is due to Canada&rsquo;s inadequate cooperation in curbing the flow of illicit drugs across the border.
Generally, countries with a U.S. trade surplus will face 10% tariffs, while those with trade deficits will see rates starting at 15%. High tariffs have been imposed on nations including Syria (41%), Myanmar (40%), Laos (40%) and Switzerland (39%).
Taiwan will face a 20% tariff on its exports to the U.S. beginning August 7, 2025. This rate is lower than the originally threatened 32% in April but higher than the 15% tariffs applied to Japan, South Korea and the European Union.
China and Mexico are temporarily exempt amid ongoing negotiations, with China&rsquo;s tariff deadline set for August 12.
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> Two more Big Tech earnings to report: Amazon (AMZN) and Apple (AAPL). 
Amazon reported strong Q2 results with revenue of $167.7 billion, up 13% year-over-year, beating expectations. Earnings per share were $1.68, above the predicted $1.32. AWS revenue grew 17.5% to $30.9 billion, driving most of Amazon&rsquo;s operating profits, which totaled $19.2 billion. Advertising revenue also rose 22%.
And Apple reported solid fiscal Q3 2025 results with revenue of $94 billion, a 10% increase year-over-year, and earnings per share of $1.57, up 12% from last year. iPhone sales grew 13% to $44.6 billion, driven by the new iPhone 16 lineup and an unusual buying pattern partly linked to tariff concerns.
All good, right? Despite the earnings beat, AMZN shares are down almost 8% today while AAPL&rsquo;s down 2%.
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> On second thought, Amazon and Apple aren&rsquo;t really outliers today&hellip; Stocks are getting hammered. 
Admittedly, the Nasdaq is getting hit hardest; the tech-heavy index is down 1.75% to 20,753. Stuck in the middle &mdash; the S&amp;P 500 &ndash; is down 1.25% to 6,255 while the Big Board is down &ldquo;just&rdquo; 1% to 43,650.
Precious metals? They&rsquo;re catching a bid today: Gold&rsquo;s up 1.30% to $3,392.70 per ounce, and silver&rsquo;s up 0.40% to $36.85.
But the crypto market&rsquo;s in a slump. Bitcoin&rsquo;s lost 1.50% to $115,200, and Ethereum&rsquo;s down 3.80% to $3,600.
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-5-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-5_2x-new.png 2x" alt="5" width="37" />UPDATE: U.S. Private Vaults&rsquo; Federal Raid
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> More than four years after federal agents raided <a href="https://5minforecast.com/2021/05/12/innocence-is-no-defense-against-federal-seizure/">U.S. Private Vaults</a> in Beverly Hills, civil asset forfeiture is again in the spotlight.
The controversial case saw more than 800 safe-deposit boxes seized &mdash; by a joint taskforce including the FBI, DEA and USPS &mdash; with the justification that U.S. Private Vaults catered to criminals, offering extreme customer anonymity and a &ldquo;don&rsquo;t ask, don&rsquo;t tell&rdquo; policy.
Yet the raid swept up not only those accused of criminal wrongdoing, but also hundreds of everyday people who used the boxes to store life savings, family heirlooms and important documents.
Among the innocent caught in the dragnet was Linda Martin, who lost $40,200 in the raid. Despite the warrant expressly forbidding agents from searching or seizing customers&rsquo; property, the FBI took her money and offered no explanation.
Later, the &ldquo;notice&rdquo; sent to Martin referenced a laundry list of potential federal crimes but didn&rsquo;t specify why she was targeted or which law(s) she allegedly violated.
Although the FBI eventually returned her cash, Martin fought back in court, hoping to defend her civil rights to due process, privacy and more. She argued, with the support of the Institute for Justice, that the government must provide specific, fact-based explanations when seizing someone&rsquo;s assets.
Unfortunately, Ms. Martin&rsquo;s case hit a dead end last week, as the U.S. Court of Appeals for the District of Columbia dismissed her case for lack of jurisdiction. (Legal advocates observe that most forfeiture cases never even make it all the way through the court system due to procedural hurdles.)
For now, the case&rsquo;s dismissal means the FBI&rsquo;s current forfeiture practices remain largely unchecked. And federal agencies retain broad powers to seize property, while Americans &mdash; and their property rights &mdash; remain under siege.
Try to have a good weekend, reader&hellip; And don&rsquo;t forget to check out Saturday&rsquo;s 5 Bullets. Take care!
Best regards,
<img class="aligncenter" src="https://media.paradigmpressgroup.com/signatures/emily-clancy.png" alt="Emily Clancy" width="250px" align="left" />
Emily Clancy Associate editor, Paradigm Pressroom's 5 Bullets

The world’s largest lithium deposits are inviting worldwide attention — and inviting some unintended consequences.

<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-1-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-1_2x-new.png 2x" alt="1" width="37" />Wall Street&rsquo;s AI Blind Spot
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />According to Paradigm&rsquo;s crypto-and-AI expert James Altucher: &ldquo;China is quietly creating an AI empire that could soon rival Big Tech&rsquo;s dominance. And almost nobody is talking about it.&rdquo;
Earlier this year, a small Chinese startup named DeepSeek stunned the tech world by unveiling an AI model matching OpenAI&rsquo;s capabilities &mdash; at a fraction of the cost.
For a brief moment, headlines buzzed with concern about China&rsquo;s AI progress. But then, &ldquo;everyone went back to ignoring it,&rdquo; says James. &ldquo;Big mistake.&rdquo;
Chinese AI development is advancing at an incredibly rapid pace, but one company stands out&hellip;

<img class="aligncenter" src="https://images.ctfassets.net/vha3zb1lo47k/1ZLN6iszOew2nIDNYK65s7/a5bc9173ebb63984b947d435712fa5fb/AJ.png" width="540px" />
Over the past decade, the e-commerce giant Alibaba (BABA) has transformed into an AI powerhouse, developing some of the most advanced AI models in the world.
In April, Alibaba released its Qwen3 model family, which &ldquo;matched or beat offerings from OpenAI and Google on several key benchmarks,&rdquo; James says.
&ldquo;Last week, a new version of Qwen3 surpassed both OpenAI&rsquo;s o4-mini and Google&rsquo;s Gemini-2.5 Pro on major reasoning tests.&rdquo;
Plus, Alibaba plans to pour $53 billion into AI and cloud infrastructure over the next three years. And the company is &ldquo;backing Moonshot AI, whose Kimi K2 model is beating ChatGPT and Claude in coding tasks.&rdquo;
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> What distinguishes Alibaba as a leader at the forefront of AI innovation?
Unlike American tech giants struggling with high labor costs &mdash; including Nvidia, Google and Microsoft &mdash; Alibaba benefits from &ldquo;China&rsquo;s vast pool of AI talent at a fraction of Silicon Valley salaries,&rdquo; James notes.
The company is embedding AI throughout its massive e-commerce ecosystem, which serves millions of customers daily. Its cloud business is rapidly growing and becoming the &ldquo;Amazon Web Services of Asia&rdquo; with AI built into its core.
In February, Alibaba struck a deal with Apple to provide the AI brains for Siri in China. Recently, they announced that their AI assistant, Quark, will soon power smart glasses &mdash; potentially rivaling Meta&rsquo;s Ray-Ban offerings.
The company is making breakthroughs in healthcare too: its Damo Panda AI model received FDA breakthrough device designation for detecting pancreatic cancer with 34.1% greater accuracy than radiologists.
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> Despite this innovation, Alibaba is undervalued compared to its American peers.
Its market cap is about one-tenth of Amazon&rsquo;s, and it trades at just 13 times earnings &mdash; a fraction of what U.S. peers command. This valuation gap exists largely due to lingering investor wariness about Chinese stocks stemming from &ldquo;past accounting scandals and fears of government interference.&rdquo; But James argues this fear may be overblown regarding Alibaba.
He further highlights that Alibaba has a &ldquo;strong balance sheet with more cash than debt, operates in sectors the Chinese government wants to develop (AI, cloud computing, e-commerce, etc.) and is actively buying back shares, showing confidence in its own future.
&ldquo;The geopolitical risks are real,&rdquo; James concedes, &ldquo;but they're likely priced into the stock already. China knows that harming foreign investors would trigger retaliation, potentially threatening companies like TikTok in Western markets.
&ldquo;Meanwhile, US-China chip tensions are thawing, with Trump reversing Biden's ban on shipping Nvidia H20 chips to China. This opens the door for even faster AI development at Alibaba.
&ldquo;For investors, this creates a rare opportunity,&rdquo; he concludes. &ldquo;While everyone else chases the same handful of American AI stocks at premium prices, you could be positioning yourself in what might be the most overlooked AI opportunity on the market.
&ldquo;The AI revolution represents a once-in-a-generation wealth creation opportunity,&rdquo; James says. &ldquo;And Chinese AI &mdash; specifically Alibaba &mdash; might be the most overlooked part of that opportunity.&rdquo;
<a id="2"></a>

[Urgent: This afternoon, all eyes are trained on American tech giant Apple, awaiting a game-changing announcement from CEO Tim Cook. That&rsquo;s why it&rsquo;s absolutely crucial you act FAST &mdash; before Apple&rsquo;s big reveal 4 pm EST. Or you risk missing out on a prime opportunity.
<a href="https://pro.paradigm-press.info/m/2464611">Click here</a> to view James Altucher&rsquo;s down-to-the-wire briefing, including simple steps in order to take immediate action.]

<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-2-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-2_2x-new.png 2x" alt="2" width="37" />A Fed Rate Cut Incoming?
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />&ldquo;The Fed did continue the pause in its Fed funds rate as we predicted. This kept the Fed&rsquo;s target rate unchanged at 4.50%,&rdquo; says Paradigm&rsquo;s macro expert Jim Rickards, kicking off his post-FOMC meeting roundup.
Notably, two FOMC members disagreed with the decision to pause rate cuts. These two &ldquo;no&rdquo; votes are important because they don't happen often; dissent suggests there is some disagreement and debate at the Fed about the best path forward.
Jim underscores the significance of this division: &ldquo;Counting board member votes only, the vote to pause on policy changes was 5-2, which is an uncomfortably small majority in a world where collegiality and consensus are everything.&rdquo;
Division at the Fed hints at potential shift in policy or leadership ahead &mdash; especially as Chair Jerome Powell&rsquo;s term nears its end in 2026.
The meeting&rsquo;s focus, meanwhile, Jim notes, centered on the Fed&rsquo;s &ldquo;dual mandate&rdquo;: controlling inflation and fostering employment.
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />&ldquo;For now, the Fed&rsquo;s action on Wednesday clearly shows it is less concerned about unemployment and more interested in fighting inflation by keeping rates at a relatively high level,&rdquo; Jim says.
Recent inflation data show a troubling upward trend &mdash; we&rsquo;ll have more to say about inflation in a moment &mdash; while unemployment rates have remained stable.
Powell acknowledged the delicate balance in his post-meeting remarks: &ldquo;Recent indicators suggest that growth of economic activity has moderated... The moderation in growth largely reflects a slowdown in consumer spending.&rdquo;
Jim interprets these comments as a possible signal: &ldquo;A rate cut is a near certainty,&rdquo; given that inflation data can be interpreted to justify easing. (Jim&rsquo;s forecast, by the way, bucks popular opinion.)
<img class="aligncenter" src="https://images.ctfassets.net/vha3zb1lo47k/GEpmW8yvvmvEdKjcn5EqR/8db9f3b21589aacf56e357ce6cc10046/Jim-tweet2.png" alt="jim tweet" width="540px" />
Jim suggests that if consensus at the Fed erodes further, decisive policy moves &mdash; including a strong rate cut at the September meeting &mdash; could very well be on the horizon.
Ultimately, Jim warns the Fed appears to be &ldquo;following markets and not leading them. That&rsquo;s bad news for investors because, if the Fed were leading the economy, they would get ahead of the coming recession.
&ldquo;They&rsquo;re not,&rdquo; he concludes, &ldquo;doing either.&rdquo;
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-3-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-3_2x-new.png 2x" alt="3" width="37" />Market Miscellany
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />The Core Personal Consumption Expenditures (Core PCE) index, the Federal Reserve&rsquo;s preferred measure of inflation, rose 0.3% in June 2025, matching economist expectations but surpassing May&rsquo;s revised 0.2% increase.
On a yearly basis, core PCE inflation &mdash; which strips out food and energy prices &mdash; rose 2.8%, slightly above forecasts but ruler-flat from May&rsquo;s revised reading.
Once again, June&rsquo;s number signals persistent inflation, firmly entrenched above the Fed&rsquo;s 2% inflation target.
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> Meta (META) and Microsoft (MSFT) both reported strong earnings on Wednesday afternoon, exceeding analysts' expectations and boosting share prices. 
Meta posted Q2 revenue of $47.52 billion &mdash; a 22% increase year-over-year &mdash; with net income rising 36% to $18.34 billion, or $7.14 per share.
Its core advertising revenue grew 21%, and Meta expects third-quarter revenue between $47.5 billion and $50.5 billion, beating forecasts. The company also raised its full-year capital expenditure forecast to between $66 billion and $72 billion, reflecting heavy investments in AI infrastructure.
Microsoft reported fiscal fourth-quarter revenue of $76.44 billion, up 18%, with net income increasing to $27.23 billion, or $3.65 per share. Like Meta, Microsoft plans substantial capital expenditures, with over $30 billion anticipated in the first fiscal quarter, driven by AI investments.
Plus, Microsoft surpassed the $4 trillion market cap milestone.
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> At the time of writing, META shares are up 11.5% while MSFT is up 4.5%. 
As for the broader stock indexes, the Nasdaq&rsquo;s leading the way, up 0.60% to 21,260, and the S&amp;P 500 is up 0.25% to 6,380. The Big Board, however, is down about 0.30% to 44,335.
Commodities are hitting the skids today. The price of crude is down 1.85% to $68.75 for a barrel of WTI. Meanwhile, gold is down 0.10% to $3,349.20 per ounce, but silver&rsquo;s getting kicked in the teeth: down almost 3% to $36.65.
The crypto market? Both Bitcoin and Ethereum are up about 1% to $118K and $3,780 respectively.
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-4-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-4_2x-new.png 2x" alt="4" width="37" />Overbought Doesn&rsquo;t Mean OVER
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />&ldquo;While stocks are getting a little overbought here, it&rsquo;s not set in stone that we&rsquo;ll see a broad pullback soon or even at all!&rdquo; emphasizes Paradigm&rsquo;s retirement-and-income specialist Zach Scheidt.
Zach defines overbought as a scenario wherein stocks have &ldquo;moved up too far, too fast,&rdquo; often detected by technical indicators like the Relative Strength Index (RSI). However, Zach says this condition can resolve in multiple ways, not just through sharp declines.
One common but overlooked resolution is consolidation, when prices &ldquo;trade sideways within a range for weeks or even months.&rdquo; This process &ldquo;resets valuations, cools off sentiment, and allows earnings or economic data to catch up to price levels,&rdquo; though it may frustrate momentum traders.
Another way is through a shift in leadership among sectors. Zach notes: &ldquo;If tech stocks led the rally and are now overbought, money may rotate into energy, industrials, or financials,&rdquo; easing pressure under the surface without dragging the whole market down.
&ldquo;Prices may fall 3&ndash;5% or more as investors lock in profits and wait for better entry points,&rdquo; he continues. &ldquo;This is the most obvious resolution and what many expect when they hear the term overbought.
&ldquo;The key point, though, is that not every dip signals the start of a deeper bear market. It's often just the market resetting expectations and absorbing gains.
&ldquo;Understanding these dynamics is crucial for both short-term traders and long-term investors,&rdquo; Zach concludes. &ldquo;Instead of exiting positions prematurely or without a plan, it may be more prudent to tighten stop-losses, reduce risk in extended names, or look for relative strength in under-owned sectors.
&ldquo;Overbought signals are just that: signals. They suggest caution, not panic.&rdquo;
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-5-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-5_2x-new.png 2x" alt="5" width="37" />Summer&rsquo;s Budget-Friendly Buzz
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />This summer, if you&rsquo;re scanning bar menus and spot a cocktail &mdash; the &ldquo;Spaghett&rdquo; &mdash; you don&rsquo;t have heatstroke. 
This fizzy concoction &mdash; <a href="https://5minforecast.com/2023/04/27/powells-glitch-in-the-matrix/#440">Miller High Life</a> plus a splash of Italian aperitif Aperol and maybe a dash of lemon &mdash; has bubbled up from bartender secret to reigning champ of budget-friendly coolers.
The switch to Spaghetts isn&rsquo;t just about refreshment; it&rsquo;s a wallet-driven decision. Nicknamed the &ldquo;hobo Negroni&rdquo; and the &ldquo;trailer park spritz,&rdquo; it&rsquo;s the Aperol spritz&rsquo;s thrifty cousin.
The Spaghett first appeared on menus at Wet City Brewery in Baltimore, Maryland &mdash; shoutout to Paradigm&rsquo;s HQ! &mdash; where it was created by bartender Reed Cahill in 2016. It&rsquo;s been on their cocktail menu from the brewery's opening, and has gained a cult following since.

<img class="aligncenter" src="https://images.ctfassets.net/vha3zb1lo47k/36mLvdhl5py2zMMnQF29tP/19b2605d4329a005693b0c8d284f0a3b/WetCity.png" alt="wet city facebook page" width="540px" />

Source: Facebook
But is the Spaghett a recession omen? The numbers are telling: Spaghett orders soared 65% in the first half of 2025 &mdash; up 1,000% since 2022 &mdash; according to Square.
So while it may taste like summer, the Spaghett&rsquo;s explosive popularity says just as much about the economic weather; it&rsquo;s a bittersweet signal that even happy hour isn&rsquo;t immune to recession vibes.
Cheers?
Best regards,
<img class="aligncenter" src="https://media.paradigmpressgroup.com/signatures/emily-clancy.png" alt="Emily Clancy" width="250px" align="left" />
Emily Clancy Associate editor, Paradigm Pressroom's 5 Bullets

According to James Altucher: “China is quietly creating an AI empire that could soon rival Big Tech’s dominance. And almost nobody is talking about it.”

Wall Street’s AI Blindspot

<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-1-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-1_2x-new.png 2x" alt="1" width="37" />Cupertino Meets Nevada
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />Apple (AAPL) invested $500 million in Vegas-based MP Materials (MP), a move that&rsquo;s shaking up global supply chains and challenging the dominance of international players in rare earth magnets.
Here&rsquo;s why this is a game changer: MP Materials is widely recognized as the only fully integrated rare earth element (REE) producer in the United States.
Apple CEO Tim Cook himself calls this partnership a testament to &ldquo;American innovation.&rdquo;
He adds: &ldquo;Rare earth materials are essential for making advanced technology, and this partnership will help strengthen the supply of these vital materials here in the U.S.&rdquo;
Specifically, the neodymium magnet is a very strong, permanent magnet made from an alloy of neodymium, iron, boron and more. It&rsquo;s the most powerful type of rare-earth magnet commercially available.

<img class="aligncenter" src="https://images.ctfassets.net/vha3zb1lo47k/3OIdXsTVge04QXQaxvzgXr/f41a3a965599ba7db63cd15c911ea10a/magent.png" alt="magnet" width="350px" />

Courtesy: Ames Laboratory
These magnets are the backbone of iPhones, electric vehicles, wind turbines and, yes, even America&rsquo;s next-generation defense technology.
&nbsp;According to Apple, the plan is to create &ldquo;an entirely new pool of U.S. talent and expertise in magnet manufacturing,&rdquo; with magnets from Texas shipped worldwide to feed the insatiable demand for REE-based products.
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />The Apple-MP alliance is all-in on transforming the industry, building not only massive manufacturing lines but also a dedicated rare earth recycling facility at Mountain Pass, California.
It&rsquo;s a farsighted vision: American workers. American mining. American tech. The stuff Jim Rickards calls our &ldquo;American Birthright.&rdquo;
For years, the U.S. has been dangerously dependent on foreign (mainly Chinese) supply for REE.
That&rsquo;s why Apple&rsquo;s partnership with MP Materials marks more than a business deal; it&rsquo;s a shot across the bow for global competitors and a clarion call to American miners and policymakers alike.
The plan is ambitious. Not only will MP ramp up magnet manufacturing for Apple, but the recycling operation at Mountain Pass will process scrap mining output as well as recycled feedstock from old iPhones.
Apple says nearly all the magnets in its devices are already made from 100% rare earths, and it&rsquo;s working to innovate even further by exploring &ldquo;novel magnet materials [to] enhance magnet performance.&rdquo;
This collaboration represents a new dawn for American mining and manufacturing, laying the groundwork for a self-reliant nation, one powered by the ingenuity, grit and resolve that built America in the first place.
As the global appetite for rare earths grows, the world will be watching Apple and MP Materials deliver the supply chain independence Jim Rickards champions, inspiring a full-scale revival of America&rsquo;s strategic industries.
One thing&rsquo;s certain: The race for rare earth elements is on, and for those ready to mine, manufacture, build &mdash; and recycle &mdash; the future&rsquo;s bright.

[Ed. note: This Thursday, July 31st, a major event tied to Apple is set to spark explosive gains &mdash; in one case, up to 7,100% in just six days.
This isn&rsquo;t insider gossip or Wall Street rumor. Instead, it&rsquo;s intelligence sourced directly from a top-secret AI tool &mdash; one used by only three entities globally, including a $48-billion hedge fund.
<a href="https://pro.paradigm-press.info/m/2464025">For reasons you&rsquo;re about to see,</a> you must act before 4pm ET on Thursday, or you could miss out on this trade opportunity entirely.]

<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-2-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-2_2x-new.png 2x" alt="2" width="37" />An Earnings Season Undercurrent
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />&ldquo;The slow, steady grind continues this week,&rdquo; says Paradigm&rsquo;s pro market analyst Greg Guenthner. &ldquo;[Monday] managed to eke out small gains.&rdquo; But he warns momentum may be fading, with markets &ldquo;starting the day off higher only to fade into red&rdquo; as earnings season intensifies.
Greg highlights Novo Nordisk&rsquo;s (NVO) cut to guidance, &ldquo;due to what it says is lighter demand for Ozempic and Wegovy,&rdquo; sending shares down &ldquo;as much as 20%.&rdquo;
This sets a tense backdrop for looming earnings from giants including META, MSFT, AAPL and AMZN. &ldquo;Can these stocks impress investors? Or are we in for some corrective action should they come up short?&rdquo;
Greg observes: &ldquo;The breakneck rallies in the tech theme baskets are quickly cooling,&rdquo; citing a &ldquo;slow bleed lower&rdquo; among AI, quantum, drone and flying car stocks.
Even the ARK Innovation ETF (ARKK), propped up recently by strong performers like Robinhood (HOOD) and Roblox (RBLX), &ldquo;has made no progress since last Tuesday and is likewise at the mercy of key earnings reports.&rdquo;
Looking at sector strength, Greg notes: &ldquo;Semis are holding up decently well&hellip; AMD has been hot&hellip; and NVDA is quietly back on track.&rdquo; Despite caution, &ldquo;it&rsquo;s hard to get too bearish with these stocks looking so strong.&rdquo;
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> &ldquo;Overall, my trading plan hasn&rsquo;t changed. I&rsquo;m not going to force anything in this tape,&rdquo; Greg says.
&ldquo;Just a few weeks ago, we were able to rotate through several quick-hit trades because all the fast movers were only going up. Now that these red-hot areas of the market are cooling, I&rsquo;m looking for additional cracks that could signal its time for stocks to finally consolidate or move lower for a few weeks, at minimum.
&ldquo;It&rsquo;s almost August, and we&rsquo;ve yet to see any significant consolidation following the rally off the April lows. Seasonally, this is the perfect time for stocks to shake out some weak hands.&rdquo;
Greg adds: &ldquo;Remember, we&rsquo;re almost exactly a year removed from the <a href="https://paradigmpressroom.com/post/apology-from-tokyo">Yen scare</a> that tanked the averages heading into August. While I&rsquo;m not saying the same thing needs to happen again, it&rsquo;s important to mentally prepare for these scenarios.
&ldquo;This market has lulled many traders to sleep,&rdquo; he concludes. &ldquo;If you&rsquo;re not ready for some downside, you can easily be caught off guard and make poor decisions.&rdquo;
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> Taking a look at the stock market today, the Big Board is down 0.10% to 44,575. The tech-heavy Nasdaq, on the other hand, is up 0.25% to 21,155 while the S&amp;P 500 is up 0.10% to 6,375.
As for commodities, oil is up 0.60%, just under $70 for a barrel of WTI. Precious metals? Gold and silver are both losing steam. The price of gold&rsquo;s down 0.80% to $3,354.10 per ounce, and silver&rsquo;s down 1.40% to $37.75.
The crypto market, meanwhile, is in the green. Bitcoin is up 0.60% to $118,200 while Ethereum&rsquo;s up 0.50% to $3,785.
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> Jim Rickards anticipates the Federal Reserve will continue its pause in cutting interest rates at this week&rsquo;s FOMC meeting, keeping the federal funds target at 4.50%. 
He notes inflation has been creeping higher in recent months, while unemployment remains steady and low by historical standards, giving the Fed more reason to prioritize inflation over job growth for now.
Jim expects the Fed to signal ongoing caution, especially as Chair Jay Powell is unconvinced that recent tariff hikes won&rsquo;t stoke further inflation.
Jim argues the Fed is &ldquo;not leading the market, they&rsquo;re following it,&rdquo; pointing out that short-term market rates like Secured Overnight Financing Rate (SOFR) and Treasury bills are already below the Fed&rsquo;s target.
He warns that continued pauses in rate cuts are less about stimulating the economy and more about the Fed lagging behind real economic conditions. &ldquo;The truth is that the Fed does not understand the economy and is almost irrelevant.&rdquo;
Tomorrow, we&rsquo;ll feature Jim&rsquo;s post-FOMC meeting roundup.
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-3-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-3_2x-new.png 2x" alt="3" width="37" />Another Threat to the Power Grid
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />The current national waiting time for a new transformer has soared to 127 weeks &mdash; more than two years. For highly specialized transformers, the wait can stretch as long as four years.
<a href="https://paradigmpressroom.com/post/how-50-states-are-now-giving-you-access#4">Transformers</a> lower high-voltage electricity so it&rsquo;s safe for homes and businesses. While U.S. policy now encourages domestic manufacturing &mdash; with the Build America, Buy America rules &mdash; these requirements clash with the reality that only about 20% of the equipment used by America&rsquo;s grid is made domestically.
Even without these rules, global demand is overwhelming. Elevated by &ldquo;aging grid infrastructure, new renewable-energy generation, expanding electrification, increased EV charging stations, and new data centers...demand is coming from all over the world,&rdquo; according to IEEE Spectrum.
Production is ramping up, but increases are slow, as many transformers must be custom-built for each installation rather than mass-produced. This complicates efforts to meet demand quickly.
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> A major concern lies beyond manufacturing delays: transformers are extremely vulnerable to electromagnetic pulses (EMPs) from solar storms (or atomic bombs). 
While militaries have hardened their systems against EMPs, civilian infrastructure remains dangerously exposed. &ldquo;Nothing comparable has been done for civilian infrastructure,&rdquo; Oilprice.com notes, leaving the bulk of the grid open to catastrophic failure if such a massive event were to occur.
The last solar storm strong enough to cripple the grid happened in 1859, when society wasn&rsquo;t nearly as electrified.

<img class="aligncenter" src="https://images.ctfassets.net/vha3zb1lo47k/hVtjpItKEfEKbxEZH9yU5/62bf97bcbf1c65686c1eb1f6111970eb/Cahaba-Gazette.png" alt="Cahaba Gazette" width="450px" />

The Cahaba Gazette, Alabama: Sept. 9, 1859
Today, a similar event would be disastrous &mdash; and with multi-year waits for new transformers, recovery would be painfully slow. This critical vulnerability demands attention, as does the urgent need to upgrade our electrical infrastructure.
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-4-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-4_2x-new.png 2x" alt="4" width="37" />Elon&rsquo;s Long Game
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />&ldquo;Tesla stock dropped 9% after reporting its second straight quarter of declining auto sales,&rdquo; says Paradigm editor Davis Wilson at The Million MIsson 
&ldquo;The company warned that more rough quarters could be ahead, thanks to softening demand and the expiration of EV tax credits.
&ldquo;But instead of addressing the core business,&rdquo; Davis says, &ldquo;Musk went full showman.
&ldquo;He promised that robotaxis would reach half the U.S. population by the end of this year &mdash; yet another bold claim that conveniently steers attention away from Tesla&rsquo;s very real problems.
&ldquo;It&rsquo;s a pattern. Musk knows how to control the narrative better than anyone.
&ldquo;When the numbers don&rsquo;t cooperate, he sells the dream.
&ldquo;And too often, people buy it. Please don&rsquo;t be one of those people&hellip;
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> &ldquo;Buried in Tesla&rsquo;s earnings call,&rdquo; Davis says, &ldquo;was one quote that is worth paying attention to.&rdquo; 
According to Elon&hellip;
<blockquote>Batteries are going to be a massive thing&hellip; I think not [many] people appreciate just how gigantic the scale of battery demand is.</blockquote>
<blockquote>The sustained power output from the U.S. grid is around 1 TW, but average usage is less than half of it. If you add batteries to the mix, you can run the power plants 24/7 at full capacity. More than doubling the energy output per year of the United States, just with batteries.</blockquote>
&ldquo;While I don&rsquo;t always trust Elon&rsquo;s timelines, his insights into specific industries are hard to beat.
&ldquo;If he&rsquo;s right, lithium demand is poised to surge,&rdquo; Davis notes. &ldquo;I&rsquo;ve been following Albemarle (ALB) and Lithium Americas (LAC) closely for nearly a decade.
&ldquo;Right now, much like energy stocks in the late 2010s and after the COVID downturn, no one wants to touch them.
&ldquo;But that&rsquo;s often exactly when the biggest gains are made.&rdquo;
Davis&rsquo; key takeaway: &ldquo;Energy was once written off &mdash; until it wasn&rsquo;t. The same setup could be unfolding for lithium today.&rdquo;
We&rsquo;ll be turning our full attention to lithium in Friday&rsquo;s issue. You&rsquo;ll want to stay tuned.
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-5-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-5_2x-new.png 2x" alt="5" width="37" />Mailbag: She&rsquo;s a Keeper?
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />&ldquo;Brava to Emily Clancy. Please keep her around!&rdquo; a contributor writes after reading last week&rsquo;s &ldquo;Got Flashlights?&rdquo; issue.
&ldquo;Her <a href="https://paradigmpressroom.com/post/got-flashlights">report</a> was one of the most interesting and insightful commentaries I have read at 5 Bullets. No defaming people or outlandish promises. No disheartening attempts to win the good graces of Trump. Just well-presented facts and discussion of pertinent issues. A breath of fresh air. More please!&rdquo;
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />&ldquo;Thank you, Emily!&rdquo; says another reader in response to Saturday&rsquo;s highlight issue featuring a burger chain&rsquo;s controversy.
&ldquo;I used to live in San Jose. Best place I've ever lived. I wish I could afford it &mdash; and hoping California can heal from disastrous progressive government.
&ldquo;I'm writing to thank you for the In-N-Out Burger story. I have so many great California memories and that's one of them. I live in Florida now, so I'm very interested in any possible plans to expand into the East.
&ldquo;Do they still have protein burgers wrapped in lettuce instead of bread? Looking forward to finding out in person someday.&rdquo;
Emily: Thank you so much for your kind notes. As far as I know, after eight years on the team, I&rsquo;m not going anywhere!
And thanks for sharing your memories of In-N-Out Burger. Per your question: Yes, In-N-Out still offers their burgers &ldquo;protein style,&rdquo; which means the burger is wrapped in lettuce instead of a bun.

<img class="aligncenter" src="https://images.ctfassets.net/vha3zb1lo47k/5nFnLwnas0SCAVmXx5coO7/3be2c474eff4987c58146bcbb71ed8ad/In-n-out.png" alt="in n out" width="540px" />

Courtesy: innoutmenus.com Is it lunchtime yet?
Here&rsquo;s hoping you get to enjoy one again soon out East!
Take care! We&rsquo;ll be back again tomorrow with another round of 5 Bullets&hellip; 
Best regards,
<img class="aligncenter" src="https://media.paradigmpressgroup.com/signatures/emily-clancy.png" alt="Emily Clancy" width="250px" align="left" />
Emily Clancy Associate editor, Paradigm Pressroom's 5 Bullets

AAPL

Apple (AAPL) invested $500 million in Vegas-based MP Materials (MP), a move that’s shaking up global supply chains.

Apple’s Rare Earth Alliance 

We&rsquo;re stepping away from our usual format today to highlight a seismic shift rippling through the crypto world. For years, says our AI-and-crypto expert James Altucher in his Investment Network e-letter (July 24, 2025), digital assets attracted only tech insiders and passionate early adopters. But as cryptocurrencies hit record highs and headlines, the crowds have changed &mdash; and so has the conversation.
From Wall Street to Washington, momentum is building on every front. Landmark legislation is finally giving crypto a reliable place in the U.S. financial system. Ethereum is rolling out breakthroughs that could turn speculation into mainstream utility. Meanwhile, the &ldquo;old&rdquo; playbook &mdash; buy Bitcoin, ignore the rest &mdash; is getting upended by a new wave of projects and potential.
Yet, even with all the attention, most investors remain on the sidelines. As new regulatory clarity opens the gates for altcoins and institutional capital, the next few months could prove pivotal for crypto&rsquo;s future. Read on to see why James believes we&rsquo;re in the early innings of something much bigger &mdash; and how you can position yourself before the real frenzy begins&hellip;
<h1 style="text-align: center;">The $4T Crypto Bull Signal You Can&rsquo;t Ignore</h1>

Things feel very different in crypto-land these days.
Years ago, when I used to go to cryptocurrency conferences, it was the most technical people you could imagine: programmers, mathematicians and cybersecurity experts.
These days, there are crypto conferences happening somewhere almost every week.
The attendees look like the sort of folks you might see at the mall, or Disneyland, or a baseball game.
You know&hellip; regular people.
Back in 2012, I went on to CNBC to discuss my new book and cryptocurrency. At the time, crypto was looked at by regular people as a scam or a gimmick.
Now it's the daily topic of conversation on CNBC. Uber drivers whiz through cities with their crypto trading apps open on one phone and their maps on another.
It's safe to say that crypto has graduated from an obscure investment to something with a real mainstream following. And yet &mdash; despite the nonstop headlines and weekly record highs &mdash; crypto&rsquo;s wild ride hasn&rsquo;t even started&hellip;
Why You&rsquo;re STILL Early
According to a report published by research firm Gallup, just 14% of American adults currently own cryptocurrency.
Another 18% of Americans are open to buying cryptocurrency, with 4% of respondents planning to buy cryptocurrency in the near future.
Among investment professionals, cryptocurrency is viewed even more favorably.
A report published by consulting firm EY in January found that 59% of institutional investors (pension funds, endowments, hedge funds, etc.) plan to invest 5% or more of their assets under management in cryptocurrency this year.
While these survey results are encouraging, they are nothing compared to what comes next&hellip;
Crypto on Capitol Hill
July was a turning point for the entire crypto industry.
After years of regulatory uncertainty, Washington had its first ever &ldquo;Crypto Week.&rdquo;
Bitcoin (BTC) responded by blasting past $122,000 &mdash; shattering previous records.
The overall crypto market hit a historic $4 trillion in total value.
What changed? After years of being ignored or targeted, crypto finally has friends in high places.
The cornerstone of Crypto Week was the GENIUS Act &mdash; the first major U.S. cryptocurrency law ever passed.
President Trump signed it into law after a dramatic series of votes in Congress.
This law creates a clear framework for &ldquo;stablecoins&rdquo; &mdash; digital dollars that move on blockchains.
If you're new to crypto, think of stablecoins as digital versions of the dollar that can be sent anywhere in the world instantly, 24/7, with minimal fees.
They're called &ldquo;stable&rdquo; because one stablecoin always equals one dollar &mdash; unlike Bitcoin or Ethereum (ETH) which change in value constantly.
These digital dollars have become the backbone of the crypto economy.
Ethereum (ETH) currently hosts over $130 billion in stablecoins on its blockchain.
That's half of the $260 billion in total stablecoins across all blockchains worldwide.
The new GENIUS Act is clear about how traditional stablecoins will be regulated.
Make no mistake, I&rsquo;m still super bullish on stablecoins as a whole. But they&rsquo;re just one piece of the puzzle in crypto&rsquo;s coming transformation.
Ethereum's Next-Level Upgrade
While Bitcoin grabbed headlines with its price surge, Ethereum has been quietly making waves of its own.
Ethereum&rsquo;s price has jumped over 55% in the past month, and for good reason.
The Ethereum development team just announced a breakthrough that will revolutionize how the network operates.
They're implementing something called &ldquo;zkEVM&rdquo; &mdash; a technology that will make Ethereum faster and cheaper to use.
In simple terms, zkEVM uses advanced math proofs to verify transactions without the network having to process every single step.
It&rsquo;s like the difference between checking someone&rsquo;s entire work on a math test versus just confirming they got the right answer.
This upgrade will eventually allow Ethereum to handle far more transactions per second, potentially turning it into a real competitor to traditional payment networks like Visa or Mastercard.
For investors, this means Ethereum could soon support many more applications and users, driving demand for both ETH and tokens built on its network.
The Main Event: The CLARITY Act
As big as the GENIUS Act and Ethereum&rsquo;s zkEVM announcements are, they&rsquo;re just opening acts for the main event: The CLARITY Act.
This bill, which passed the House with strong bipartisan support (294-134), would completely reshape the crypto landscape.
Currently, cryptocurrency projects exist in a regulatory gray zone that&rsquo;s stifling innovation.
The Securities and Exchange Commission (SEC) has been treating nearly all cryptocurrencies as securities (like stocks) &mdash; requiring extensive registration and compliance that&rsquo;s almost impossible for decentralized projects.
This approach has forced many crypto companies to build overseas instead of in America.
The CLARITY Act would change all that by creating a clear path for cryptocurrencies to be regulated as commodities instead of securities.
This distinction is huge.
Commodities face much lighter regulation than securities, and they&rsquo;re overseen by the Commodity Futures Trading Commission (CFTC) rather than the SEC.
The bill provides objective criteria for when a cryptocurrency qualifies as a &ldquo;digital commodity&rdquo; rather than a security.
For crypto investors, this is like discovering a new continent of opportunity.
Projects that have been afraid to launch in the U.S. would finally have a clear roadmap to compliance.
Existing projects could transition from SEC oversight to CFTC jurisdiction once they become sufficiently decentralized.
And most importantly for altcoin investors, this would open the floodgates for innovation in the crypto space.
With clear rules, entrepreneurs would be free to build new blockchain applications without fear of unexpected regulatory crackdowns.
This could trigger an explosion of new tokens and use cases, from decentralized finance to gaming, social media and more.
What This Means for Altcoins
Altcoins &mdash; cryptocurrencies beyond Bitcoin and Ethereum &mdash; stand to benefit enormously from these developments.
Currently, many promising altcoin projects avoid U.S. markets entirely due to regulatory uncertainty.
With the CLARITY Act potentially becoming law by September, these projects would have the green light to fully engage with American users and investors.
Imagine thousands of innovative projects suddenly having access to the world's largest economy and investment capital.
Projects building on Ethereum would benefit doubly &mdash; from both the zkEVM upgrade making the network faster and the regulatory clarity allowing them to operate without fear.
The timing couldn't be better.
With institutional investors planning to allocate significant portions of their portfolios to crypto, and only 14% of Americans currently owning any, we're still at the very beginning of adoption.
Crypto Summer
As we head into August, all signs point to a historic summer for cryptocurrency.
The GENIUS Act is now law, providing a foundation for stablecoins to flourish.
Ethereum's zkEVM upgrade is making rapid progress, promising to supercharge the network.
And the CLARITY Act is moving through Congress with strong momentum, potentially reaching the President's desk by September.
Each of these developments alone would be significant for crypto markets.
Together, they represent a perfect storm of positive catalysts that could drive prices to levels that today seem unimaginable.
We&rsquo;re witnessing the transformation of cryptocurrency from a fringe technology to critical financial infrastructure.
And if you think the past few weeks have been exciting, just wait until the real bull market starts.
Sincerely,
<img class="aligncenter" src="https://media.paradigmpressgroup.com/signatures/james-altucher.png" alt="James Altucher" width="250px" align="left" />
James Altucher

fmf-web-image

We’re stepping away from our usual format today to highlight a seismic shift rippling through the crypto world.

The $4 Trillion Crypto Quake

<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-1-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-1_2x-new.png 2x" alt="1" width="37" />American Birthright, Now Powering AI
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />Here&rsquo;s an interesting variation on the &ldquo;American birthright&rdquo; theme of Paradigm&rsquo;s Jim Rickards.
The Trump administration is opening up four parcels of federal land to host data centers &mdash; the better to meet AI&rsquo;s exploding demand for computing power.
As a reminder, the essence of the Birthright idea is that the Trump administration is keen to tap into the energy and mineral wealth on federal lands &mdash; a bounty valued at $150 trillion.
But with this new announcement, it&rsquo;s clear that Trump and his cabinet have more than mining and drilling in mind. Building data centers on federal property is also in the mix.
According to the NextGov website, &ldquo;the facilities include Idaho National Laboratory, Oak Ridge Reservation, Paducah Gaseous Diffusion Plant and Savannah River Site, where private sector partners will develop AI data center and energy generation infrastructure.&rdquo;
The announcement came last Thursday, hours after Donald Trump signed another executive order on AI.
&ldquo;By leveraging DOE land assets for the deployment of AI and energy infrastructure, we are taking a bold step to accelerate the next Manhattan Project &mdash; ensuring U.S. AI and energy leadership,&rdquo; says Energy Secretary Chris Wright.
&ldquo;These sites are uniquely positioned to host data centers as well as power generation to bolster grid reliability, strengthen our national security, and reduce energy costs.&rdquo;
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> &nbsp;&ldquo;The plan aims to address one of the largest challenges facing the energy sector,&rdquo; reports Politico&rsquo;s energy unit &ndash; &ldquo;how to find enough electricity to support a technology boom and ensure the United States stays competitive with China in developing AI technologies.
&ldquo;According to the Lawrence Berkeley National Laboratory, data centers could consume roughly 12% of U.S. electricity by 2028.&rdquo;
For the moment, it&rsquo;s too soon to suss out which companies might benefit from this announcement &ndash; and what an ideal investing strategy might be. We&rsquo;ll stay on the case, though.

<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> Having said that, there&rsquo;s another development on the Birthright front that merits your immediate attention.
&ldquo;When I first released my &lsquo;American Birthright&rsquo; prediction,&rdquo; says our Jim Rickards, &ldquo;I thought this $150 trillion mineral boom would unfold slowly.&rdquo;
Jim figured on an 18-24 month timeframe. But everything changed when China imposed export controls on rare-earth elements &ndash; and the Trump administration responded quickly.
Bottom line: &ldquo;Three small companies stand to profit the most from President Trump&rsquo;s mineral initiatives,&rdquo; says Jim. &ldquo;My research shows these three companies could dominate a $100 billion market within the next 12 months &ndash; creating potential gains of over 1,000% each.&rdquo;
To learn how you can collect your share from what Jim calls &ldquo;Phase II&rdquo; of the Birthright story, <a href="https://pro.paradigm-press.info/m/2463223">just follow this link</a>.

<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-2-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-2_2x-new.png 2x" alt="2" width="37" />A Week of Thrills &lsquo;n&rsquo; Chills! (Yawn)
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />&ldquo;This could be the most consequential week for the economy in years,&rdquo; CNN tells us.
Wow! It might be the most unforgettable week since <a href="https://5minforecast.com/2018/06/11/unforgettable-week-already-forgetting/">the week of June 11, 2018</a> &mdash; when Bloomberg said we should brace ourselves for &ldquo;the world economy&rsquo;s most important week of the year.&rdquo;
The G-7 summit had just wrapped up, Donald Trump was meeting with North Korea&rsquo;s Kim Jong Un, most of the world&rsquo;s major central banks were holding meetings or issuing statements&hellip;
Yeah, you don&rsquo;t remember any of that, do you?
But this is what the media does now and then to try to command your attention.
Don&rsquo;t get us wrong: CNN&rsquo;s laundry list this morning is, if nothing else, comprehensive: &ldquo;A slew of crucial economic data is set for release this week, including the jobs report, inflation, consumer confidence and corporate earnings. We&rsquo;ll get the first glimpse at America&rsquo;s second-quarter gross domestic product, the broadest measure of the economy.
&ldquo;And, most crucially, the Federal Reserve will decide whether to cut rates or hold steady one more time. As if that weren&rsquo;t enough, Trump&rsquo;s trade policies also come due&hellip;&rdquo;
All of it is short-term consequential, and we&rsquo;ll of course keep tabs on it. But the media needs to get a grip: A few years hence, no one&rsquo;s going to look back on the week of July 28, 2025 and say, Whoa, that changed everything!
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />Amid the backdrop of a trade agreement between the United States and the European Union, the major U.S. stock indexes start the week barely in the green.
Only four more days remain before Trump&rsquo;s self-imposed tariff deadline: If other countries don&rsquo;t come to terms, Washington will impose tariffs at or near the levels announced on &ldquo;Liberation Day&rdquo; last April 2.
Yesterday, Trump reached an agreement with EU leaders &mdash; in which Europe&rsquo;s exports to America will be subject to a 15% tariff.
But once again, the details are fuzzy. Supposedly Europe is going to buy $250 billion of American energy every year for the next three years.
That&rsquo;s going to be a steep climb based on this Bloomberg chart, drawn on figures from the EU&rsquo;s statistics agency Eurostat.
<img class="aligncenter" src="https://images.ctfassets.net/vha3zb1lo47k/2yj6nVJjFKtBqqGQUBUVYJ/366aed7a253e72bf7afdc0a08a3deec8/EU-energy.png" alt="EU energy" width="540px" />
In a similar vein, we&rsquo;re now learning how Japan is going to be &ldquo;investing&rdquo; $550 billion in U.S. projects under its deal struck with Washington last week. Turns out that according to Japan&rsquo;s chief negotiator, at least 98% of that total will be in the form of loans.
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />At the same time, some other trade-and-tariff deadlines are shifting&hellip;
<ul>
<li>The August 12 target to reach a deal with China will likely be pushed back another 90 days. U.S. and Chinese negotiators are meeting today in Stockholm, Sweden</li>
</ul>
<ul>
<li>Trump has suddenly shortened the September 2 deadline for Russia to reach a cease-fire with Ukraine. Now he says it&rsquo;s &ldquo;10-12 days.&rdquo; So, no later than Aug. 9 &ndash; at which point Russia&rsquo;s trading partners will supposedly be subject to &ldquo;secondary tariffs&rdquo; of 100%.</li>
</ul>
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> In the meantime, the S&amp;P 500 is still inching higher into record territory &mdash; up five points at last check and only seven points away from the 6,400 mark. The Nasdaq is also up a tad from Friday&rsquo;s record close.
Gold continues to lose ground after last week&rsquo;s smackdown &mdash; off another $23 to $3,312. Silver is flat at $38.08. Bitcoin hovers just over $118,000.
The big mover today is crude &mdash; up 2% at $66.49 after the OPEC+ nations announced no changes to their current production policy.
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-3-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-3_2x-new.png 2x" alt="3" width="37" />The Most Hated Tax Cut In History (Still)
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> Donald Trump might be proud of his &ldquo;Big, Beautiful Bill&rdquo; but a majority of Americans don&rsquo;t care for it, if a Wall Street Journal poll is to be believed.
The poll finds only 42% of those surveyed supporting the bill, while 52% oppose it. Obviously there&rsquo;s a huge partisan split&hellip; but among independents, 54% disapprove.
&ldquo;Nearly 70% of overall poll respondents said the law would help the wealthy,&rdquo; says the WSJ summary &mdash; &ldquo;while just 7% said that group would be hurt. At least half of poll respondents said the legislation would harm poor people, the working class, Social Security beneficiaries, the U.S. economy, Medicaid recipients, nutrition-assistance recipients and the federal budget deficit.&rdquo;
None of this is especially surprising. Trump was fixated on a kitchen-sink tax-and-spending bill that in its final form ran to 887 pages.
There was no effort to sell the American people on the necessity of the bill&rsquo;s most important provision &mdash; making the 2017 Trump tax cuts permanent. No one was out there screaming to folks that if Congress didn&rsquo;t act, Obama-era tax rates would come back. No one warned folks in the 22% tax bracket that they&rsquo;d be going back to 25%, for example.
Really, how many people were even aware of that possibility?
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />Then again, the Trump 45 administration screwed the PR pooch with the original tax cuts, too.
&ldquo;The Most Hated Tax Cut In History&rdquo; I called it <a href="https://5minforecast.com/2019/04/09/the-most-hated-tax-cut-in-history/">one day in 2019</a>.
For too many Americans, the benefits of the tax cuts were <a href="https://5minforecast.com/2019/04/15/the-tax-cut-almost-no-one-noticed/">neither tangible nor visible</a>.
<blockquote>➢ Contrast all of this with the Dubya Bush tax cuts early in this century &mdash; when folks got a check in the mail.</blockquote>
Supposedly the GOP learned its lesson this time around, says the Journal: &ldquo;Some new tax cuts started this year and will show up in larger tax refunds in early 2026 &mdash; before the midterms. That was an intentional choice in contrast to the 2017 tax law.&rdquo;
We shall see&hellip;
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-4-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-4_2x-new.png 2x" alt="4" width="37" /> Passings: Tom Lehrer
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> Just in case you&rsquo;re of a certain age &ndash; honestly your editor is too young &ndash; the song satirist Tom Lehrer has died. He was 97.
Lehrer&rsquo;s imagination summoned a brilliantly mordant take on nuclear war &ndash; <a href="https://paradigmpressroom.com/post/avoidable-armageddon">a topic we muse on in this space</a> now and then because there won&rsquo;t be any economy or markets for us to write about if nukes start flying.
Enjoy this rendition of &ldquo;We Will All Go Together When We Go&rdquo;...
<img class="aligncenter" src="https://images.ctfassets.net/vha3zb1lo47k/4PI6Cpe69MKWFEUdb7zKmt/af616a9cd5b23a09e86216dfc0d7e113/youtube.png" alt="youtube" width="540px" />
Lehrer wrote and performed little after the early 1970s &ndash; perhaps because, as he once remarked, &ldquo;Political satire became obsolete when Henry Kissinger was awarded the Nobel peace prize.&rdquo;
At least Lehrer had the satisfaction of seeing Henry the K kick the bucket first. RIP&hellip;
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-5-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-5_2x-new.png 2x" alt="5" width="37" />&ldquo;We Used To Make **** In This Country&rdquo;
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />&ldquo;JOB WELL DONE!!&rdquo; a reader enthuses after <a href="https://paradigmpressroom.com/post/2025-update-from-jfk-to-jeffrey-epstein">our 2025 update</a> of &ldquo;From JFK To Jeffrey Epstein.&rdquo;
But he wishes for more&hellip;
&ldquo;I would like to see your indepth analysis a bit more tied to the &lsquo;numbers&rsquo; of how our markets behaved or the impact on the GDP or other measures.
&ldquo;Perhaps more simply put: Correlate the JFK killing to financial/economic etc. changes &mdash; on a yearly basis? &mdash; up to Epstein's death. How all the fine points you are making may have impacted our economy/investments/returns, etc.?
&ldquo;I very much appreciate the history but request that your findings be tied more to what happened to our economy from the early 1960s to today. THANKS!&rdquo;
Dave responds: An intriguing inquiry&hellip; but this isn&rsquo;t a case where stock market averages or GDP figures tell the whole story.
Obviously both of them have soared in the last six decades. But what about the rising standard of living and the shared sense of middle-class prosperity that marked the era between the end of World War II in 1945 and JFK&rsquo;s murder in 1963?
It&rsquo;s gone.
Counterfactual history is always a dicey thing&hellip; but perhaps JFK would not have embarked on his successor&rsquo;s ruinously expensive &ldquo;guns and butter&rdquo; program. LBJ&rsquo;s mushrooming welfare-warfare state proved so costly that by 1971, Richard Nixon blew up the Bretton Woods agreement and severed the dollar&rsquo;s final link to gold.
Without any gold backing for the currency, it was easy-peasy for Washington to crank out all the dollars it wanted, send them overseas and get voluminous inexpensive consumer goods in return. Such a deal!
But the result was the hollowing-out of America&rsquo;s industrial capacity and the &ldquo;financialization&rdquo; of the economy.
In the immediate post-WWII years the FIRE sector (finance, insurance, real estate) made up under 10% of the economy. Nowadays it&rsquo;s between 20-25%.
Meanwhile, here&rsquo;s a map that&rsquo;s been making the rounds online in recent weeks. I can&rsquo;t vouch that it&rsquo;s 100% accurate. But look at how health care &mdash; a profoundly extractive industry <a href="https://paradigmpressroom.com/post/luigi-mangione-isnt-the-problem">as I chronicled this past spring</a> &mdash; has become the leading employer in over half the states.
<img class="aligncenter" src="https://images.ctfassets.net/vha3zb1lo47k/3XhtMGvwDFbYSKOxUElc2q/a7c846e8dbf66eae67ee050871449e0f/employer-state.png" alt="employers each state" width="540px" />
The present state of affairs was summed up neatly more than 20 years ago by the union boss Frank Sobotka during Season two of The Wire: &ldquo;We used to make s*** in this country, build s***.
&ldquo;Now we just put our hand in the next guy&rsquo;s pocket.&rdquo;
It can&rsquo;t last forever. It nearly came to an end in 2008 and again in 2020 &mdash; but both times, the powers that be conjured gobs and gobs of additional funny money to keep the scam going a while longer.
Next time, you&rsquo;ll want to own as much tangible wealth, and the companies that produce it, as you can &mdash; gold, silver, copper, uranium and so on.
Real things will matter again as the post-JFK, post-Bretton Woods &ldquo;financialized&rdquo; economy goes through an inevitable reset.
Best regards,
<img class="aligncenter" src="https://media.paradigmpressgroup.com/signatures/dave-gonigam.png" alt="Dave Gonigam" width="250px" align="left" />
Dave Gonigam Managing editor, Paradigm Pressroom's 5 Bullets

map-data-centers

Here’s an interesting variation on Jim Rickards’ “American birthright” them...

America’s Birthright Enters the AI Age

<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-1-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-1_2x-new.png 2x" alt="1" width="37" />The Meme Stock Crowd Grows Up
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />Oh no, not this again&hellip;
<img class="aligncenter" src="https://images.ctfassets.net/vha3zb1lo47k/3SByoua86Ok4x1Y2GKNcCZ/2c5a2d3168679f1395537e99de21d720/NYT.png" alt="new york times" width="540px" />
Remember early 2021, when a bunch of investing neophytes bid up the share prices of left-for-dead companies like GameStop and AMC Entertainment?
They&rsquo;re back this week &mdash; only this time the objects of their affection are Krispy Kreme, Opendoor, Rocket Mortgage and Kohl&rsquo;s. Given Krispy Kreme&rsquo;s ticker symbol of DNUT, the foursome has been christened as the DORK stocks.
As the week has gone on, other names have similarly gotten hot. Like GameStop back in the day, some of them have nostalgia value for millennials or Gen-Zers &mdash; such as American Eagle Outfitters and GoPro, the company that makes those forehead-mounted cameras for surfers, skydivers and what-not&hellip;

<img class="aligncenter" src="https://images.ctfassets.net/vha3zb1lo47k/1wiQDczZvlPYXm8p6Ho9bW/dff68d5bfcf7850f05005e5d2fee0939/GoPro.png" alt="GoPro" width="300px" />

Nostalgia trip: GoPro founder Nick Woodman during the company&rsquo;s 2014 heyday&hellip;
Then as now, the ramp-ups in share price are swift &mdash; followed by equally swift plunges.
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> But this isn&rsquo;t 2021 anymore. The meme stock kids have grown up. 
The mainstream pearl-clutching that accompanied the 2021 frenzy is mostly missing this time &mdash; that &ldquo;unserious&rdquo; bit above from The New York Times notwithstanding.
Back then, it was absolutely insufferable. For instance, New York magazine&rsquo;s business editor&hellip;
<img class="aligncenter" src="https://images.ctfassets.net/vha3zb1lo47k/4tNdWWaKd9oM2FJqxF4Hnk/fddf5729627fd4eb6b6c4d18e861c9f7/Josh.png" alt="josh tweet" width="540px" />
The politicians piped up, too: Sen. Elizabeth Warren (D-Massachusetts) demanded regulators step in to ensure markets &ldquo;reflect real value&rdquo; &mdash; as if that were something government officials are capable of determining.
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> What the media and the politicians didn&rsquo;t understand was that the meme stock phenomenon of 2021 had its origins in the financial crisis of 2008.
<a href="https://5minforecast.com/2021/02/01/the-millennials-revenge/">We saw it plain as day</a>: The meme stock crowd came of age living in mom&rsquo;s basement after graduation, navigating a miserable job market. And that&rsquo;s assuming mom hadn&rsquo;t been foreclosed on.
As the 2010s wore on, their existences were defined by crushing student debt and underemployment as baristas and Uber drivers &mdash; and even those jobs went away with COVID lockdowns.
But with lockdown came &ldquo;stimmy&rdquo; checks. These folks had time to spare and money to burn. And they had a grudge against everyone who got bailed out in 2008.
&ldquo;I vividly remember the enormous repercussions that the reckless actions by those on Wall Street had in my personal life,&rdquo; said a typical post on Reddit&rsquo;s WallStreetBets forum. &ldquo;We lived off of pancake mix, and powdered milk and beans and rice for a year.&rdquo;
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />But it seems the mainstream has made its peace with the meme stock crowd now.
By and large, there are no articles tut-tutting about young adults who have no idea what they&rsquo;re getting into. They knew very well then, and they know very well now.
At Yahoo Finance, Steve Sosnick of Interactive Brokers describes the attitude of meme-stock traders in terms reminiscent of any bull market. "Everything they&rsquo;ve been trying has been working for them. If the basic stuff&rsquo;s working, why not try a bit more speculative stuff?"
&ldquo;Meme stock traders are no longer a punchline,&rdquo; says the Axios site &mdash; which quotes an analyst at RBC named Amy Wu Silverman. These traders, she says, have a "savviness that is very interesting to me that wasn't there 10 years ago.&rdquo;
Good on them. Still, there&rsquo;s a cynicism at work here &mdash; or what my acquaintance Demetri Kofinas, host of the Hidden Forces podcast, calls &ldquo;financial nihilism.&rdquo;
It&rsquo;s an attitude in which investing is not about macroeconomic forces or traditional valuation metrics like sales and earnings. It&rsquo;s about the creation of a narrative &mdash; and the ability of enough people to move an asset by sheer force of their numbers.
If, like me, you come from an older generation and can&rsquo;t relate to this approach, much less put it to work in your portfolio&hellip; at least you have to understand it.
Meme stocks, memecoins, zero-dated options &mdash; they&rsquo;re all, in their way, a totally logical response to what the economist Kurt Richebacher called &ldquo;late-stage degenerate capitalism&rdquo; &mdash; Big Business in bed with Big Government, the dollar&rsquo;s purchasing power cratering, a hollowed-out middle class.
Like it or not, this is the world in which we invest now. Adapt or die&hellip;
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-2-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-2_2x-new.png 2x" alt="2" width="37" />Seven Days
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> It&rsquo;s now seven days before Donald Trump&rsquo;s tariff deadline &mdash; and even the handful of done deals looks shaky at best.
Barring any further trade agreements, &ldquo;reciprocal&rdquo; tariffs will kick in next Friday against about 50 countries. The administration has struck deals with a half-dozen so far &mdash; most recently Japan this week.
But as Japan&rsquo;s Nikkei news service reports today, &ldquo;Details released by the White House on its tariff agreement with Japan include many points that are unclear or out of sync with how Tokyo has explained it, including the date it goes into effect and the framework for Japanese investment in the U.S.&rdquo;
For instance &mdash; Trump&rsquo;s announcement that Japan will invest $550 billion in U.S. projects. As Nikkei points out, &ldquo;The sum involved exceeds the Japanese government's tax revenue for a full year.&rdquo;
Between the tariff deadline, any fallout from the next Federal Reserve meeting and the job numbers due a week from today&hellip; next week could be mighty interesting for the markets.
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> But that&rsquo;s then and this is now. &ldquo;Despite new record highs, the averages are barely budging this week,&rdquo; colleague Greg Guenthner observes at The Trading Desk.
The S&amp;P 500 notched another record close yesterday &mdash; and it&rsquo;s up another quarter percent today to 6,378. The Nasdaq is also in record territory after closing over 21,000 for the first time Wednesday.
&ldquo;We have to respect this market strength,&rdquo; says Greg. &ldquo;I know I&rsquo;ve talked a lot about how stocks are overextended and need to cool down. But what I think doesn&rsquo;t matter &mdash; and markets can stay overbought for much longer than you might think.&rdquo;
Precious metals have been grinding lower during the back half of this week. Gold is down $100 since Tuesday &mdash; the bid $3,329 at last check. And while silver will likely conclude a third-straight week over $38, it was over comfortably over $39 on Wednesday. Bitcoin is losing ground, now barely holding the line on $115,000.&nbsp;
Crude&rsquo;s sideways action this week continues, a barrel of West Texas Intermediate fetching $65.63.
The big economic number of the day is durable goods orders &mdash; down 9.3% in June. That&rsquo;s not a huge shock; the previous month&rsquo;s number was skewed by a surge in orders for aircraft and military hardware. But if you strip those out, you get a nasty surprise &mdash; a drop of 0.7%. Among dozens of Wall Street economists surveyed by Econoday, every one of them expected the number to rise slightly.
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-3-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-3_2x-new.png 2x" alt="3" width="37" />Crime and Punishment
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> The Trump administration is gearing up for a massive crackdown on tax evasion &mdash; not that the White House is framing it in those terms, of course.
Bearing in mind that tariffs are taxes, here&rsquo;s the start of a Bloomberg dispatch&hellip;
<blockquote>Federal prosecutors are laying the groundwork to criminally charge companies and individuals that try to evade U.S. tariffs as President Donald Trump readies a fresh round of levies next week.</blockquote>
<blockquote>American customs officials have long sought to thwart attempts to avoid duties using relatively common schemes like changing the country of origin on imports or misclassifying goods on forms. However, such issues historically have been handled through fines or civil settlements and seldom by criminal prosecution.</blockquote>
<blockquote>But now, the Justice Department says it&rsquo;s adding &ldquo;significant personnel&rdquo; to a new unit to focus on trade fraud and other corporate crimes. Meanwhile, prosecutors at U.S. attorneys offices have been requesting records of transactions involving foreign goods during the Biden administration as they look to build cases &mdash; setting up a potential blueprint for moving against those accused of shirking new tariffs.</blockquote>
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />This enforcement campaign could get really interesting if the tariffs are ultimately struck down by the Supreme Court.
As you might recall from <a href="https://paradigmpressroom.com/post/unconstitutional">our May 9 edition</a>, several small businesses that rely on imported components for their goods are suing the feds. They argue the president has no authority to impose tariffs without the say-so of Congress &mdash; again, because tariffs are taxes.
In late May, a federal court ruled the case has enough merit to proceed &mdash; even while leaving Trump&rsquo;s tariff regime in place for the time being. The plaintiffs asked the Supreme Court to fast-track the case, but in June the justices turned down that request.
The case will almost certainly find its way to the Supreme Court eventually &mdash; but probably not during its term that starts this fall.
Imagine if the justices rule in, say, early 2027 that the Trump tariff regime is indeed unconstitutional.
Would the feds have to issue refunds to the affected businesses? That&rsquo;d blow a hole in the federal budget, given the surge in tariff revenue this year.
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-4-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-4_2x-new.png 2x" alt="4" width="37" />Comic Relief
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />We have nothing to say about the call that Trump paid on the Federal Reserve yesterday &mdash; other than <a href="https://paradigmpressroom.com/post/trumps-favorite-whipping-boy">what we said on Tuesday</a> and this meme we spotted today.
<img class="aligncenter" src="https://images.ctfassets.net/vha3zb1lo47k/5jVbIcrG5E2kmO3slzvyD9/d43ec6557e0cffeec62d8bdb508fd6dd/Trump.png" alt="trunp interest rates" width="540px" />
<img src="https://media.paradigmpressgroup.com/fmf-assets/bullet-5-new.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/bullet-5_2x-new.png 2x" alt="5" width="37" />From JFK to Jeffrey Epstein
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" />&ldquo;I question the reference to Jeffrey Epstein as a financier,&rdquo; a reader writes after <a href="https://paradigmpressroom.com/post/2025-update-from-jfk-to-jeffrey-epstein">Wednesday&rsquo;s edition</a> &mdash; a comprehensive follow-up to 2023&rsquo;s &ldquo;From JFK to Jeffrey Epstein.&rdquo;
&ldquo;What business did he ever raise money for? Did he ever obtain a bank loan or equity investment on behalf of any business? Did he invest any of his customer's funds in any business?
&ldquo;From what I've been able to discern, the answers to all these questions are no.
&ldquo;Maybe it's possible I'm overlooking something in his sordid history. If so, I'm willing to be educated on this. But the only finance-related activities I've been able to find that he engaged in were blackmail and extortion.&rdquo;
Dave responds: No, you&rsquo;re not overlooking a thing. That was at the heart of Vicky Ward&rsquo;s 2003 expose of Epstein for Vanity Fair: How did he come to acquire his vast wealth?
Literally no one she interviewed believed Epstein could support his lavish lifestyle simply by managing the money of billionaires and taking a commission.
<img class="infinity-bullet" src="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left.png" srcset="https://media.paradigmpressgroup.com/fmf-assets/Paradigm_Logomark_left_2x.png 2x" align="left" /> &ldquo;I cannot express in words how profoundly well you've done with this topic. I could not agree more,&rdquo; writes another.
&ldquo;But what offends me the most and perplexes even my jaded self is the decision to not pursue the investigation. It is not about Epstein or his &lsquo;list&rsquo; per se. It is about those that preyed on young girls and abused them mercilessly and those victims, whose lives were forever altered.
&ldquo;The memo released by the DOJ/FBI was pretty carefully drafted in that it said that a review of existing materials did not provide enough evidence to prosecute. That's the right answer to the wrong question. The question should be why the investigation is ended&hellip; for good.
&ldquo;Is there an insurmountable statute of limitations? If not, then just like with any cold case, investigators need to see what they can find. If they can't find anything because the victims' memories are too unreliable, flight records don't exist, emails don't exist, videos don't exist, etc., where it can be shown that the people that are mentioned in the current files can't be charged or named, fine. But to just simply end an investigation and state none will be conducted in the future is the most problematic thing.
&ldquo;I can't tell whether Trump is directly being influenced or those that provide him information are the ones being influenced, but in either event, why Trump hasn't ordered an investigation into whether more evidence exists is beyond me.&rdquo;
Dave: Trump has decided it&rsquo;s a hoax ginned up by Democrats &mdash; even likening it to Russiagate now. That&rsquo;s his story and he&rsquo;s sticking to it.
The conclusion is inescapable, even if there&rsquo;s no smoking-gun evidence that&rsquo;s come to light: There&rsquo;s dirt in the Epstein files on both Republicans and Democrats &mdash; and now there&rsquo;s a joint effort to cover it up under the guise of yet another partisan food fight.
Same old, same old, sadly&hellip;
Best regards,
<img class="aligncenter" src="https://media.paradigmpressgroup.com/signatures/dave-gonigam.png" alt="Dave Gonigam" width="250px" align="left" />
Dave Gonigam Managing editor, Paradigm Pressroom's 5 Bullets

Meme-stock

Remember early 2021, when a bunch of investing neophytes bid up the share prices of left-for-dead companies? They’re back this week. 

The DORK Trade 

unnamed

The power problems gripping the PJM region are getting worse. 

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